Whatās Going On Here?New data out on Tuesday showed that EV demand in the UK has moved into the slow lane. What Does This Mean?The UKās bright green futuristic plans include banning sales of new gas-guzzling cars completely by 2030. Problem is, a couple of speed bumps might be stopping folk from jumping on the electric bandwagon. For one, the government announced last month that an EV-related tax exemption would be scrapped come 2025, a strange move given the countryās aspirations. And for another, green cars are still more expensive than their fuel-devouring rivals. Itās no wonder, then, that online car marketplace AutoTrader reported that EV demand is flagging, making up just under 20% of new car enquiries last month versus 27% in June. AutoTrader even put the brakes on its EV outlook, predicting that itāll take till 2027 ā not 2026 ā for green vehicles to make up half of all new car sales. Why Should I Care?Zooming in: Spend more to spend less.
EVs might cost more upfront, but their owners see some serious long-term savings. According to car rental firm LeasePlan, itās now cheaper to own and run a green vehicle than an old-school motor in almost every European country. Thatās hardly a surprise, given that surging fuel prices mean youād want to remortgage your house before refilling your tank. Still, you canāt blame cash-strapped households for picking the cheaper short-term option ā hereās hoping our grandkids forgive us.
The bigger picture: So much for āreduce, reuse, recycleā.
EV sales are on the up in the US, but thereās more to the story. See, manufacturing EVs is actually worse for the environment than making traditional cars, and they only become āgreenā when theyāre driven, offsetting their production emissions with every mile. Trouble is, it turns out many households buying EVs already own one ā and the more EVs you own, the less you tend to drive each one, essentially wiping out their eco advantages. | 