On the 18th November, the day after the Prime Minister confirmed the move, advert views for new EVs increased 124 percent, whilst Auto Trader’s pay per click advertising for electric and hybrid cars recorded a 422 percent increase in impressions and a 636 percent increase in clicks, compared to the previous day. This significant surge in activity helped double the number of new EV leads sent to retailers, increasing 107 percent overnight.
In total, the number of new electric leads in November increased 421 percent year-on-year (YoY). Volkswagen and MG took the largest share of these and by some margin, receiving 34 percent and 27 percent respectively. They were followed by Kia (7 percent), Audi (6 percent), Nissan (6 percent) and Jaguar (3 percent).
Highlighting the growing consumer demand for alternatively fuelled vehicles (AFV), an onsite survey conducted last week revealed 16 percent of car buyers on Auto Trader are considering buying one, which is up from 13 percent in August. What’s more, the same study showed that the government’s decision directly resulted in 9 percent of on-site users considering an electric or hybrid as their next purchase.
Utilising Auto Trader’s Market Insight analytics tool to look at the increasing appetite for new and used AFVs on a more granular level, demand (based on searches and advert views on Auto Trader) for EVs increased 93.1 percent YoY last month, whist demand for diesel plug-ins and petrol plug-ins grew 82.3 percent and 31.9 percent respectively. As highlighted by the research, ICE vehicles remain the preferred choice for the majority (80 percent) of car buyers, however last month the rate of demand growth for fossil fuelled cars was lower than their low emission counterparts: demand for petrol grew 0.2 percent YoY in November, whilst demand for diesel fell -6.7 percent YoY.
Market Insight, which is free for all of Auto Trader’s retailer partners, also revealed that whilst levels of demand for electric has increased, so too are the levels of supply in the market, particularly nearly new and older segments. In fact, the number of EVs under a year old on Auto Trader has doubled over the previous year, whilst supply of those aged over five years has more than doubled the levels of consumer demand (347 percent versus 166 percent).
“The government’s plan is commendable; however, it’s also hugely ambitious” said Auto Trader’s commercial director, Ian Plummer. “Whilst the data highlights a significant growth in EV demand, boosted by the Prime Minister’s announcement, albeit temporarily, conversion from consideration to purchase remains low, and a long way off from what’s necessary to achieve the 2030 target. Environmental concerns are increasing, but price remains the primary driver of adoption, and beyond much needed government incentives, the onus will be on retailers and manufacturers to make the switch from ICE feel more affordable. Bringing attractive and affordable finance options to the fore, as well as highlighting the benefits of EVs on the basis of their overall cost of ownership, will be essential in building both the appetite and trust of apprehensive car buyers. Most importantly, it will be key to unlocking valuable sales opportunities in a sector of the automotive market which is only set to grow.”
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