Four in five drivers say electric cars are still too expensive

Four in five motorists think electric cars are still too expensive for them to purchase, a comprehensive survey has found. 

The damning verdict comes just weeks after ministers moved to cut grants designed to help people buy electric vehicles – and also abolished the subsidy for any EV that costs more than £35,000.

The AA’s poll of 15,549 people also highlighted the extent of frequent concerns raised about EV ownership, including limited driving ranges, extended charging times and a sub-standard infrastructure.

French car maker Renault has also revealed UK ownership figures for its most popular electric model, the Zoe, which shows the compact EV is not exclusively driven in cities.

A massive 81 per cent surveyed said electric cars are still too expensive, though a large majority (63 per cent) have never heard of the Plug-in Car Grant, which could help them make a purchase. 

Meanwhile, half were unaware of the Electric Vehicle Home Charge Scheme, which subsidises the cost of having a charger installed at your property.

The AA said these ‘misunderstandings’ may be curbing the uptake of EVs and says it wants to join with experts and MPs to outline the incentives currently available to buyers of plug-in car.

However, while grants do remain in place, the Government has been heavily criticsed by drivers and industry insiders for cutting the PiCG at a time when it’s trying to persuade more motorists to make the switch to expensive zero-emission cars.

Last month, the transport minister confirmed that the PiCG – formerly offering £3,000 off the price of any new electric car with a retail price of up to £50,000 – had been slashed to £2,500 and was only eligible for EVs with a price tag of less than £35,000.

The move means that many of the best electric models with the longest ranges – including the recently-crowned World Car of the Year Volkswagen ID.4 and every Tesla car on sale in the UK – no longer qualify for the grant.

Cuts to the Plug-in Car Grant mean some of the latest models – like the 2021 World Car of the Year Volkswagen ID.4 (pictured) – are no longer eligible to benefit from the incentive

Not one Tesla electric car qualifies for the Government’s PiCG – not even the most affordable Model 3 (pictured). The grant cuts – confusingly – come at a time when MPs are desperately trying to push more people to drive electric vehicles

Ford of Britain chairman, Graham Hoare, said the decision – which means the brand’s new Mach-E electric SUV isn’t eligible for the grant – was ‘disappointing’ and ‘not conducive to supporting the zero emissions future we all desire.’ 

He added: ‘Robust incentives – both purchase and usage incentives – that are consistent over time are essential if we are to encourage consumers to adopt new technologies, not just for all-electrics but other technologies too like plug-in hybrid electric vehicles that pave the way to a zero emissions future.’

The UK Government’s decision is completely against the incentive-driven push in other countries that have seen electric car sales surge in recent years.

For example, among the existing incentives in Norway, all-electric cars are exempt from non-recurring vehicle fees, including purchase taxes and VAT at 25 per cent.

This makes electric car prices in Norway almost on par with conventional motors with internal combustion engines.

And it has had an incredible impact on demand, with 54 per cent of all cars registered in Norway in 2020 are electric. Some 13,718 EVs were bought in December 2020 alone.

It’s quite the contrast to the UK, where the Government’s tactic is to lessen the incentives for electric cars as demand increases. 

RAC head of roads policy Nicholas Lyes said ministers ‘talk-the-talk when it comes to encouraging people into cleaner vehicles, but cutting the plug-in car grant certainly isn’t walking the walk’. 

The UK Government’s decision to reduce incentives for electric cars is completely against the policies in other countries that have seen electric car sales surge in recent years. In Norway, all non-recurring vehicle fees and VAT is cut from the price of EVs, which puts prices on par with cars with petrol and diesel engines

 Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders, said the decision to slash the Plug-in Car Grant was the ‘wrong move at the wrong time’. 

‘New battery electric technology is more expensive than conventional engines and incentives are essential in making these vehicles affordable to the customer. Cutting the grant and eligibility moves the UK even further behind other markets, markets which are increasing their support, making it yet more difficult for the UK to get sufficient supply,’ he said.

‘This sends the wrong message to the consumer, especially private customers, and to an industry challenged to meet the Government’s ambition to be a world leader in the transition to zero emission mobility.’

The AA’s new research also revealed that 56 per cent of motorists are unwilling to give up their conventionally-powered cars and a similar percentage have fears around the reliability of the charging network, the National Grid and even the vehicles themselves.

Another 51 per cent said they are worried about the consequences of breaking down in an EV on a motorways – with concerns likely heightened by the ongoing reports of the lacking safety of smart motorways without hard shoulders which have been found to have caused a number of road deaths. 

But not all drivers are against the idea of going electric, the poll revealed. 

One in three (34 per cent) of the survey sample said an electric car would suit their lifestyle right now. 

A further third (32 per cent) said they liked the idea of charging at home because they ‘find going to the petrol station a chore’ – an issue that was more prominent with women (40 per cent) than men – and more than half (62 per cent) like the idea of waking up to a full battery. 

Renault says that many drivers think electric cars are only suitable for people living in cities who cover few miles. However, registrations figures for its Zoe show that there is plenty of demand for EVs in rural areas

‘Not all electric cars on the road are in big cities’ 

Renault has conducted postcode analysis of registrations of its electric Zoe supermini, dating back to when the car first went on sale in June 2013.

The Zoe is one of the 25 electric vehicles currently on sale that does qualify for the Government’s PiCG (see the full list and info below).

The French manufacturer highlights that the switch to electric power has been just as much a rural, as well as an inner-city, movement in Britain.

Unsurprisingly, Greater London has seen the highest percentage of Zoe sales with Milton Keynes, Bristol, Bedford and Cambridge completing the top five locations. 

Yet the rural town of Truro (population 18,000) and its surrounding countryside in Cornwall became home to as many Zoes as the 360,000-strong city of Leicester.

Milton Keynes, Bristol, Bedford and Cambridge have the highest proportion of Renault Zoe owners outside of the capital, the French brand says

Other more rural-based towns with strong EV adoption included Horsham in West Sussex, the surrounding villages of Bath in Somerset and quieter corners of Surrey such as Farnham.

‘Sales data since 2013 clearly shows how electrification has not been restricted to big cities and areas with congestion charges,’ the French brand said. 

‘Of particular note in the top 10 are more suburban areas in and around Brighton, St Albans, Cambridge and even Jersey,’ it added.

Top 10 areas for ZOE ownership

1. Greater London – 44%

2. Milton Keynes – 10.6%

3. Bristol – 6.6%

4. Bedford – 6.4%

5. Cambridge – 6.0%

6. Jersey – 5.7%

7. Edinburgh – 5.3%

8. Brighton – 5.2%

9. St Albans – 4.9%

10. Leeds – 4.8%

Source: Renault UK 

Note: % represents the proportion of all Renault Zoe sales in the UK

Electric cars that do qualify for the Government’s £2,500 Plug-in Car Grant

Here’s a run-down of the grant-entitled EVs, running from the cheapest to the most expensive up to £35k.

All models listed below are shown with their prices with the £2,500 grant included. 

Smart EQ Fortwo

Price: From £19,200 to £22,770

Range: 70 miles

The cheapest new electric car you can buy is the Smart EQ Fortwo – though don’t expect to go on any long-distance journeys in this compact city car

The Smart EQ Fortwo is the cheapest electric car in Britain right now, with prices starting from £19,200 including the £2,500 PiCG subsidy.

Both a cabrio and coupe version are available, with the latter being the cheaper of the two choices.

The Daimler-owned brand offers a plush interior, though – with just two seats and a tiny boot – not much space. 

The range is just as limited as the luggage capacity, with a 70-mile driving distance on a full charge. It means the Fortwo is designed specifically for urban use rather than motorway schleps and is therefore only suitable for certain motorists.

Smart EQ Forfour

Price: From £19,795 to £20,945

Range: 70 miles

Like the smaller EQ Fortwo, the four-seat Forfour has a range of just 70 miles, rendering it useful only for urban driving 

If the Fortwo doesn’t offer enough interior space for you, the four-seat Forfour (as the name suggests) means you can carry passengers and fit items – such as a small suitcase – in the boot.

It shares the same interior and mechanical underpinnings as the Fortwo, meaning quirky design and plenty of quality.

However, the two also share the same electric drivetrain and battery, which means the same 70-mile range. For many drivers, this won’t be enough – especially when you’re spending almost £20,000 on a supermini. 

Seat Mii Electric

Price: £20,300

Range: 160 miles

Seat’s compact Mii is available as a pure-electric model, with prices starting at just over £20,000

If you want a small city run-around with a longer range than the Smart offering, the Seat Mii Electric is a good option.

It can go for 160 miles between full charges – claims Seat – and offers a versatile package with plenty of room, five doors and a suitably big boot for such a dinky vehicle.

It’s good to drive too, and – with it being a VW Group product – should be well built. However, there’s not much choice on specifications, with just one version in the range (though with optional extra available). 

Fiat 500

Price: From £20,495 to £30,495

Range: 199 miles

Fiat has made a bold statement by selling only electric versions of the new 500 – the iconic compact car the brand is best known for

Fiat has made a bold statement with its all-new 500 city car; it will be available only with an electric powertrain, while the older model will be retained for the coming years to fulfil orders of those wanting a petrol engine.

The new 500, which will be in UK showrooms this year, has a 199 mile range and comes in the choice of hatchback or the rag-top cabrio, with a fabric roof that folds down towards the boot lid.

The highest-spec ‘La Prima’ versions are on sale first, with the hatch costing just under £27,500. 

Volkswagen e-Up!

Price: £21,055

Range: 159 miles 

If you want a small electric city car with lots of badge kudos, the VW e-Up! is one of the models that easily qualifies for the Plug-in Car Grant

Volkswagen’s sister car to the Seat Mii is the e-Up, which is mechanically the same model built in the same factory. A Skoda CitiGo-e was also on sale but has already sold out.

The e-Up costs almost £1,000 more than the Seat version. That essentially buys you the badge kudos of driving around in a VW.

The interior is slightly more up market and the exterior design is different, so it will ultimately come down to personal preference versus the Mii.  

MG5 EV

Price: From £24,495 to £26,995

Range: 214 miles

The first large model to feature in our list is from MG Motor, which is operated by Chinese firm SAIC. The 5 EV is a family-size estate car with a claimed range in excess of 200 miles

MG Motor, which has relaunched under Chinese ownership (the parent company is Shanghai Automotive Industry Corporation), has two electric models in its fleet, including the 5 EV.

It’s a family-friendly estate car with a 214-mile range, which will be ample for many drivers.

Priced from under £25,000 when factoring in the plug-in car grant, its proof that not all large electric models are ultra expensive. There have recently been issues with the roof rails of the 5 EV, which This is Money has covered recently. 

MG ZS EV 

Price: From £25,495 to £27,995

Range: 163 miles 

MG Motor also sells an SUV with an electric powertrain. The ZS EV might be a more appealing package than the 5 EV estate, but it does have a shorter battery range

If an estate car isn’t your thing, MG also sells a ZS EV SUV.  It’s marginally more expensive than the 5 EV and has a shorter range too.

That said, it’s one of the best low-cost electric family models currently on the market, offering lots of space and a five-star Euro NCAP crash test rating. 

The top of the range Exclusive model offers extra safety technology and – at a £2,500 premium on the standard version – is worth the extra outlay.

Nissan Leaf (and Leaf+)

Price: From £25,995 to £32,445

Range: 168-239 miles 

Nissan’s Sunderland-built Leaf is one of the longest-running EVs on the market. All variants qualify for the PiCG, even after the maximum price threshold was lowered this week

Nissan’s Leaf is the second British-built EV in our list, with the car produced at the Sunderland plant in the North East.

The current model is available as a 168-mile range standard Leaf, or the extended range Leaf+ with up to 239 miles of claimed range on a full battery.

When the cut was announced, the range-topping ‘e+ Tekna’ didn’t qualify for the PiCG as it was priced fractionally over the £35,000 threshold. Nissan has since trimmed it back to £34,995, meaning it costs £32,445 with the subsidy included. 

Mini Electric

Price: From £26,000 to £32,000

Range: 140 miles

The Oxford-built Mini Electric is one of the most fun zero-emission models on the market. All but the range-topping trim level qualify for the £2,500 subsidy

This is the first model in this list that’s built in the UK, with the electric version of the Mini produced at the brand’s Plant Oxford factory.

The urban-centric Mini has just 140 miles of range, but it part of an enjoyable package with responsive handling and a sporty feel that will put a smile on the most devout of petrol-head’s face.

The range-topping variant – the Mini Electric Collection – costs from £37,000 so isn’t eligible for the £2,500 grant at all.

Mazda MX-30

Price: From £26,045 to £30,345

Range: 124 miles

Mazda’s MX-30 is the Japanese firm’s first ever EV. While it might have interesting looks and plenty of practicality inside, a range of just 124 miles won’t be enough for all drivers

The MX-30 is Mazda’s first attempt at an electric car. The funky crossover has pillarless clamshell doors, lots of interior space and impressive handling.

Every model in the range – even the top ‘GT Sport Tech’ trim level – are eligible for the grant, offering up to £2,500 off the price.

However, there is one issue – the range. Mazda’s offering of just 124 miles will be too short for many drivers, especially when you consider real-world figures are somewhat short of the official numbers quoted. 

Vauxhall Corsa-e

Price: From £27,140 to £31,395

Range: 209 miles

Vauxhall looks set to be onto a winner with the Corsa-e, especially as its closest rival – the Ford Fiesta – is yet to launch a plug-in model

Vauxhall’s Corsa is currently the second best-selling car in Britain, and the popularity of the Corsa-e has something to do with it.

While Ford is yet to sell an electric Fiesta, the next best zero-emission option for the masses is the Corsa-e, which shares its underpinning with the Peugeot e-208 (next on our list).  

While it’s closer to the affordable end of the EV market, it’s a stark reminder of how pricey battery-powered cars are at the moment. Even with the £2,500 government grant, it is £10,600 more expensive than the entry Corsa with a petrol engine – a 64 per cent premium. 

Peugeot e-208

Price: From £27,225 to £31,475

Range: 217 miles

The Corsa-e shares its underpinnings with the Peugeot e-208. The latter – in our opinion – is the better looking of the two electric superminis

If you’re looking for a stylish electric supermini priced this side of £30,000, the e-208 from Peugeot is a good option.

It not only looks incredibly handsome from the outside but has an ample range of 217 miles. Every version of the electric Peugeot is eligible for the PiCG, right up to the GT Premium trim.

Compared to the Mini Electric, the e-208 looks like an attractive proposal. 

Renault Zoe

Price: From £27,495 to £30,995

Range: 238-245 miles

Like the Leaf, the Renault Zoe has been kicking around for some time. It’s a popular small plug-in model, but more recent supermini rivals have its number

The Zoe has been on the market longer than most EVs in this list and, previously, was among the cheapest pure-electric cars you could buy in the UK.

That’s no longer the case, with a new pricing structure pushing prices higher than some rivals. However, this reflects a boost in performance and charging capability, with the driving range on a full charge being between 238 and 245 miles.

More expensive variants are rapid charge compliant, boosting the battery capacity to provide over 150 miles of range in 56 minutes when using a compatible device.

Honda-e

Price: From £27,660 to £30,710 

Range: 131-137 miles

The Honda-e has a relatively short range but makes up for that with charming looks and a swanky interior. It’s one of the most interesting offerings eligible for the £2,500 grant

Honda’s first EV is an exciting one. Of all the models in this list, the ‘e’ is by far the best looking, with a quirky compact design that replicates the style of seventies and eighties boxy hot hatches.

A funky interior, dashboard-spanning screen and the omission of wing mirrors (cameras on stalks that beam an image to screens in the cabin instead) make it stand out in terms of appeal. It’s arguably the most charming EV on sale right now.

However, when you’re paying over £27,000 for an electric car, you might want more than 130 miles of range. 

Volkswagen ID.3

Price: From £28,370 to £33,435

Range: 217-263 miles

Volkswagen’s ID.3 is arguably the most important – and will be the most bought – model in this list. The entry version of the Golf-size electric hatchback are eligible for the PiCG

The ID.3 is arguably the most important model in this list – it’s the first from-the-ground-up EV designed by the German giant and the original model in its dedicated ID range. Following the emissions cheating scandal in 2015, this is among the first cars to repair the brand’s damaged reputation.

It’s a medium-size hatchback sharing similar dimensions to the company’s hugely popular Golf, and is just £6,000 (a relatively small difference compared to other models in this list) more expensive than the cheapest Golf with a petrol engine under the bonnet. 

VW has recently launched a ‘City’ trim level, with a 45kWh battery that returns 217 miles of range. It starts at £28,370 after the PiGC. The longer-range (263 miles) ID.3 in the entry ‘Life Pro’ and ‘Pro Performance’ specs are also eligible, while another eight trim options in the range sit above the grant’s £35,000 threshold. 

Nissan e-NV200 Combi

Price: From £30,255 to £30,975

Range: 124 miles

For those with big families and needing seven seats, the Nissan e-NV200 Combi is the only people carrier with an electric powertrain that qualifies for the grant today

If you’re looking for an electric people carrier, only Nissan’s e-NV200 Combi qualifies for the grant.

The entry-spec versions – called ‘Visia’ – of both the five- and seven-seat e-NV200 qualify for the scheme, with on-the-road prices below the £35,000 subsidy ceiling.

With just 124 miles of range, it’s not one designed for ultra-long trips. However, if you have a big family, it would make the ideal school-run wagon and ultra-green commuter.

Kia e-Niro 2

Price: From £30,345 to £34,945

Range: 180-282 miles

Only the Kia e-Niro with the smaller 39kWh battery qualifies for the slashed PiCG today. If you want one with a more capable 64kWh battery, the price difference is now a whopping £7k

Like the Hyundai Kona sister car (below), the Kia e-Niro comes with the choice of a 39kWh or 64kWh battery. The former provides up to 180 miles of range, while the latter promises up to 282 miles.

All variants of the 39kWh version – called the e-Niro ‘2’ – cost less than £35,000 and therefore qualify for the recently slashed PiCG. 

The moving of the grant’s goalposts did mean that the bigger battery capacity comes at an almost £7,000 premium over this version that does qualify for the tax-payer-funded scheme. However, since the announcement, a ‘Long Range 2’ 64kWh version of the e-Niro has been made available with a price tag of £34,945 that’s now eligible for the scheme. 

Hyundai Kona Electric

Price: From £30,395 to £32,495 

Range: 155 miles

The Hyundai Kona is the sister car to the e-Niro mentioned above. Again, only the smaller battery capacity is eligible for the Government’s subsidy

Hyundai’s electric Kona SUV is available with two battery sizes: a smaller 39kWh battery offering a fully-charged driving range of 155 miles, or the bigger 64kWh with a longer 245-mile range.

All 49kWh versions already qualified for the grant but prices of the 64kWh models had previously exceeded the £35,000 eligibility threshold set by the Department for Transport. However, the Korean maker has now lowered the price of the cheapest 64kWh model to £34,995 (£32,495 with the subisdy) to meet the eligibility.

The Kona gets rave reviews for its completeness and practical layout. 

Hyundai Ioniq Electric

Price: From £30,495 to £32,495

Range: 194 miles

Hyundai’s Ioniq feels long in the tooth compared to the latest models listed here. Dealers are likely to offer discounts on this particular car

In electric car terms, the Ioniq is getting a little long in the tooth. Hyundai remedied this with a battery update for 2021, meaning there’s an extra 26 miles of range to make it more competitive against rivals.

Since the PiGC cuts, prices across the entire range have been slashed by around £1,100. It means drivers can now get the Premium (£32,995) and Premium SE (£32,995) trims with the addition of the grant. 

It doesn’t feel quite as futuristic or competent to drive as rivals, but if you can negotiate a discount with a dealership it is a capable family-size EV. 

Peugeot e-2008

Price: From £30,730 to £32,380

Range: 206 miles

Peugeot’s e-2008 is available for the grant if you’re happy to have models lower down the trim level. This means you might have to tap into the expensive options list to get features you want

Peugeot has reacted to the PiCG cuts to reduce the list prices across the entire e-2008 range to ensure customers can continue to benefit for the scheme. A reduction of £450 on all versions mean Active Premium, Allure and Allure Premium models remain eligible for the grant. Prices after the Plug-in Car Grant for the Active Premium now start from £30,730, while Allure models start from £31,930 and Allure Premium variants from £32,380.

Like the smaller 208-e, it’s a great looking car with a very modern interior that targeted specifically at European customers looking for plush materials and lots of tech.

A 206-mile range and fast charging times means it should be a capable family car for all types of journeys. 

Citroen e-C4

Price: From £30,895 to £32,495

Range: 217 miles

Citroen was the first to react to ministers’ decision to cut the PiCG this week. The French firm has trimmed the price of its new e-C4 range so all are eligible for the scheme

One of the latest newcomers to the market is Citroen’s quirky e-C4. The French firm has been the first to react to the Government’s slashed PiCG and lowered its prices so all trim levels still qualify for the scheme, including knocking £535 off the range-topping ‘Shine Plus’ so that it sits at the £35,000 magic price point.

The brand has switched to a crossover look for the latest C4 and the interior is suitably plush with a large 10-inch touchscreen dominating the cabin. 

A 217-mile claimed range will be suitable for most, and the Citroen also has an 11kW charger, which can complete a charge in around five hours on a 32-amp home wallbox. 

DS 3 Crossback E-Tense

Price: From £31,500 to £32,400

Range: 191-206 miles  

DS Automobiles is launching cars with comfort and style in mind. The DS3 Crossback E-Tense fulfils that quota

The DS3 Crossback E-Tense is the French luxury marque’s answer to a compact electric family SUV.

While it shares many of its mechanical parts with the Peugeot e-2008 and (soon to follow) Vauxhall Mokka-e, the suspension is tuned to be more cosseting on bumpy roads, and the interior and exterior have flashes of fashion-inspired design.

The ‘Performance Line’ model currently doesn’t qualify for the PiCG, but prices could be trimmed to make it eligible. 

Skoda Enyaq iV

Price: From £31,585 to £31,200 

Range: 256 miles

With a driving range of 256 miles and plenty of interior space, Skoda’s Enyaq looks to have a winning formula that could tempt motorists out of their petrol and diesel SUVs

The only Skoda to make it into our list is the all-new Enyaq iV. It’s a compact SUV model, sharing most of its underpinnings with the more expensive VW ID.4 – a car that currently doesn’t at all qualify for the PiCG.

The two lowest trims for the new Skoda are eligible for the Government’s £2,500 saving. They both boast an impressive 256-mile claimed driving range on a fully charge, and plug them into a DC rapid charger and the batteries replenish to 80 per cent capacity in just 35 minutes.

In terms of a competent electric family car, the Enyaq iV is proof that the latest models to hit the market are always moving the goalposts further and making EV ownership more feasible to a growing percentage of motorists. 

Vauxhall Mokka-e

Price: From £31,990 to £34,995

Range: 201 miles

The Mokka-e is the latest model showing Vauxhall daring new direction under French ownership. The funky looks and 201 mile range could be tempting, especially when some versions qualify for the £2,500 government subsidy 

The second new electric Vauxhall on our list is the unique Mokka-e. 

Under the – relatively bold and bright – skin, it shares its underpinnings with the Peugeot e-2008, which is becoming a common theme now that the French parent firm Groupe PSA also owns Vauxhall (and Opel in mainland Europe).

It has a claimed range of 201 miles, which is actually a few miles shy of e-2008’s 206-mile claim. However, in the real world, the difference should be negligible and the Mokka-e’s boxy and flamboyant looks might sway your decision. Since the Government’s announcement, Vauxhall has confirmed Mokka-e prices will be revised across the entire trim range to ensure all derivatives remain eligible for the grant. Prices for the Mokka-e SE Premium now start from £33,040 OTR, while the range-topping Mokka-e Launch Edition starts from £34,995 OTR.

BMW i3 and i3s

Price: From £33,805 to £34,805

Range: 173-190 miles 

The i3 and more potent i3s have received a ‘pricing realignment’ from BMW UK so both can continue to benefit from the reduced PiCG 

No BMW was eligible for the reduced PiCG when it was cut in March, but the UK arm of the German brand has responded and cut prices so both the i3 and i3s now qualify.

A pricing realignment ensures that customers can continue to benefit from the scheme, with the on the road pricing – before grant – for the BMW i3 120Ah now starting from £33,805 and £34,805 for the sporty BMW i3s120Ah. 

There have been no changes to the high levels of standard specification offered on either model as a result of the adjustment. That means the less potent i3 offers a range of 182 to 190 miles on a single charge, while the more powerful i3s has 173 to 175 miles on a full battery capacity.