Table of Contents
Executive Summary
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- The market
- Hybrid and electric sales see strong growth with expansion set to continue
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- Figure 1: Hybrid and electric new car registrations (Great Britain), by volume*, 2013-23
- Hybrid cars dominate the market
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- Figure 2: Hybrid and electric car new registrations by type (Great Britain), by volume*, 2013-18
- Hybrid and electric cars account for 1.5% of the car parc in 2018
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- Figure 3: Hybrid and electric vehicle car parc (Great Britain), by volume*, 2013-18
- Franchised dealers dominate sales
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- Figure 4: Sales of new and used hybrid and electric cars, by channel, 2017
- Grants for hybrid and electric cars slashed in October 2018
- Innovations see growth in partnerships between car manufacturers
- Companies and brands
- Mitsubishi, BMW and Nissan currently dominate the market
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- Figure 5: ULEV manufacturer share, Q2 2017 and Q2 2018
- Promotional investment reached £38 million in 2016
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- Figure 6: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2013-17
- The consumer
- Traditional cars dominate the market
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- Figure 7: Vehicle ownership, September 2018
- The market support cars of different ages
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- Figure 8: Age of car owned, September 2018
- Shopping is the most important use for a car
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- Figure 9: Main uses for a car, September 2018
- Sizeable minority are interested in owning a hybrid or electric car
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- Figure 10: Interest in purchasing a hybrid/electric car, September 2018
- Hybrids are the most popular type of vehicle for purchasers
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- Figure 11: Interest in type of hybrid/electric car, September 2018
- Websites dominate when it comes to information
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- Figure 12: Sources of information on hybrid/electric cars, September 2018
- Costs and charging dominate worries
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- Figure 13: Concerns about hybrid/electric cars, September 2018
- Charging is a concern for many
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- Figure 14: Attitudes towards hybrid/electric cars, September 2018
- What we think
Issues and Insights
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- Electric and hybrid cars are becoming mainstream
- The facts
- The implications
- Location isn’t a worry for those interested in buying electric or hybrid
- The facts
- The implications
- Women remain a major challenge for the market
- The facts
- The implications
The Market – What You Need to Know
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- Electric and hybrid car sales are recording strong growth
- Hybrid cars dominate the market
- South East England is a major market for low-emission cars
- Franchised dealers dominate the market
- Wider car market is not performing as well
- Mixed messages when it comes to government support for the sector
Market Size and Forecast
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- Electric and hybrid car sales become a realistic alternative
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- Figure 15: Hybrid and electric new car registrations (Great Britain), by volume, 2013-23
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- Figure 16: Hybrid and electric new car registrations (Great Britain), by volume, 2013-23
- Hybrids dominate although electric cars are the more dynamic market
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- Figure 17: Hybrid and electric car new registrations by type (Great Britain), by volume, 2013-18
- Forecast methodology
Market Segmentation
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- South East England is a major market for low-emission cars
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- Figure 18: ULEV * car registrations (United Kingdom), by type and regional share, 2018 Q2
- PH-EVs have been the driving force in growing ULEV sales
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- Figure 19: ULEV sales (Great Britain), by volume, 2013-18
- Hybrid and electric cars surpass 1.5% of the car parc in 2017
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- Figure 20: Hybrid and electric vehicle car parc (Great Britain), by volume, 2013-18
- Hybrid electric vehicles dominate this market
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- Figure 21: Hybrid and electric vehicle car parc (Great Britain), by volume, 2013-18
Channels to Market
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- Franchised dealers dominate despite independents growing market share
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- Figure 22: Sales of new and used electric and hybrid cars, by channel, 2013-17
- The internet remains a marginal sales channel
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- Figure 23: Car advertisements, by fuel type (ebay.co.uk), 2016 and 2018
Market Drivers
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- Car ownership remains popular…
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- Figure 24: Number of licensed cars (Great Britain), million units, 1995-2017
- …despite new and used sales showing signs of decline
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- Figure 25: New and used car market volumes, 2013-18
- Petrol and diesel cars account for the majority of vehicles in ownership
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- Figure 26: Number of licensed cars (Great Britain), million units, 2013-18
- Growing sales for low-carbon cars illustrate the shift within the market
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- Figure 27: Number of licensed cars (Great Britain) 1-100g/km CO2, 2007-17
- Number of ULEV models more than doubles between 2014 and 2017
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- Figure 28: Development of ULEV models, 2013-17
- Number of public EV chargers passes 14,000 by 2017
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- Figure 29: Number of charging locations and connectors, 2013-17
- Faster connectors are increasingly available
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- Figure 30: Developments in connector speed, 2013-17
- High prices are a feature of the market…
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- Figure 31: On-the-road prices for the bestselling ULEVs (Q2 2018), November 2018
- …although rising motoring costs should help this sector
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- Figure 32: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2013-17
- Bans on using petrol and diesel vehicles announced within London
- Increase in second car ownership offers opportunities
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- Figure 33: Percentage of households with car availability, England, 2007-17
Regulatory and Legislative Changes
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- Office for Low Emission Vehicles
- Plug-in car grant support is scaled back
- Policy commitments
- Recent announcements
- Funding for hydrogen-powered vehicles and infrastructure (March 2017)
- Vehicle to grid innovations (July 2017)
- Additional support for low-emission technologies (September 2018)
- Changes to the Plug-in car grant (October 2018)
Companies and Brands – What You Need to Know
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- Mitsubishi, BMW and Nissan lead the market
- Co-operation is a feature amongst automotive manufacturers
- Toyota dominates the market in terms of advertising
Market Share
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- Small number of manufacturers dominate the market
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- Figure 34: ULEV manufacturer share, Q2 2017 and Q2 2018
- Outlander PHEV is the bestselling model
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- Figure 35: Top 10 ULEV model sales, by registration, Q2 2018
- A third of PH-EV sales are Mitsubishi’s Outlander
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- Figure 36: Top 10 plug-in hybrid electric model sales, by registration, Q2 2018
- Nissan’s Leaf dominates the electric segment
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- Figure 37: Top 10 electric model sales, by registration, Q2 2018
- Limited line-up in the fuel cell market
Launch Activity and Innovation
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- Hyundai and Kia explore solar charging
- Audi and Hyundai invest in fuel cell technologies
- OVO launches vehicle-to-grid and Smart chargers
- Urban Electric announces retractable charging point
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- Figure 38: UEone pop-up charger, November 2018
Advertising and Marketing Activity
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- Promotional investment appears to have peaked in 2016
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, 2013-18
- Television benefits from resurgent interest
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- Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by media type, 2013-17
- Toyota ups expenditure in 2017
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- Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by manufacturer, 2013-17
- Launch of hybrid C-HR moves Toyota into first place
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- Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on hybrid and electric cars, by brand, 2013-17
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Cars dominate the market
- Over a fifth of cars are 10 years or older
- Shopping is the most important use for a car
- Young adults and wealthy are important potential markets for hybrid/electric cars
- Traditional hybrid cars are the most popular choice
- The internet dominates as a search tool
- Purchase price and accessibility to charging points are key concerns
- Restrictions imposed by charging an electric car are a concern for many
Vehicle Ownership
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- Cars dominate the vehicle market
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- Figure 43: Vehicle ownership, September 2018
- Standard cars are popular with older, middle-income consumers and those in rural areas
- Hybrid and electric cars appeal to the young and wealthy…
- …as do other types of vehicle
Age of Car Owned
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- Despite 22% of cars being over 10 years old, younger cars are more prevalent overall
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- Figure 44: Age of car owned, September 2018
- Age is an important factor when it comes to age of car owned
- Men and women record differences in age of car owned
- Income and socio-economic status impact strongly on age of car owned
- Newer cars account for a growing share of vehicles
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- Figure 45: Age of car driven, 2014-18
Main Uses for a Car
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- Shopping is the most important use for a car
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- Figure 46: Main uses for a car, September 2018
- Older adults record broader uses for their car
- Income and socio-economic status also affect car use
- Hybrid/electric car owners record high use of their vehicle for business purposes
Interest in Purchasing a Hybrid/Electric Car
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- Sizeable minority are interested in owning hybrid or electric cars
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- Figure 47: Interest in purchasing a hybrid/electric car, September 2018
- Young adults record the strongest interest
- Those in the wealthiest socio-economic group are also significant
- City dwellers and those in London are a target market
- Owners of younger cars are more likely to be interested in hybrid/electric vehicles
- Drivers on the school run are a likely target market
- Interest in owning a hybrid/electric car is strengthening
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- Figure 48: Interest in purchasing a hybrid/electric car, 2016 and 2018
Interest in Type of Hybrid/Electric Car
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- Hybrids are the most popular choice
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- Figure 49: Interest in type of hybrid/electric car, September 2018
- Men are important buyers
- Women record especially low interest in certain types of car
- Location isn’t a factor for those with an interest in purchasing hybrid/electric
Sources of Information on Hybrid/Electric Cars
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- Specialist motor websites lead when it comes to information
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- Figure 50: Sources of information on hybrid/electric cars, September 2018
- Young and old seek out different channels
- Older men favour the internet
- Manufacturer and dealer communication is important for those with the newest cars
- Internet is growing in importance
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- Figure 51: Interest in purchasing a hybrid/electric car, 2016 and 2018
Concerns about Hybrid/Electric Cars
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- Costs and charging dominate worries
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- Figure 52: Concerns about hybrid/electric cars, September 2018
- Need to charge is a greater concern for women
- Young adults have more general concerns about hybrid/electric cars
- Londoners appear satisfied on some issues
- Access to charging points of concern to shoppers
- Biggest concerns about owning a hybrid/electric car – CHAID analysis
- Older and affluent car owners most concerned about charging
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- Figure 53: Electric and hybrid Cars – CHAID – Tree output, September 2018
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- Figure 54: Electric and hybrid Cars – CHAID – Table output, September 2018
Attitudes towards Hybrid/Electric Cars
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- Charging is a leading concern when it comes to electric cars
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- Figure 55: Attitudes towards hybrid/electric cars, September 2018
- Older adults need convincing about viability of electric cars
- Families more likely to view electric cars as secondary vehicles
- City dwellers have technology concerns
- Concerns about the environment are important for hybrid/electric owners
- Those using their car for business hold some of the strongest opinions
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Exclusions
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market sizing and segment performance
- Forecast methodology
- Forecast data
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- Figure 56: Forecast of hybrid and electric new car registrations (Great Britain) – Best- and worst-case scenarios, 2018-23
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