UK takes top spot for electrified vehicle adoption in Europe

The UK is leading the electrified vehicle market amongst large countries in Europe, according to BloombergNEF's flagship Electric Vehicle Outlook 2025 report. In 2024, battery electric and plug-in hybrid vehicles made up 29 per cent of passenger vehicle sales in the UK, which is ahead of both France (27 per cent) and Germany (13.1 per cent).

Globally, the report anticipates almost 22 million battery electric (BEV) and plug-in hybrid (PHEV) electric vehicle sales this year, up 25 per cent from 2024, as the cost of lithium-ion batteries decrease and the production of more affordable EV models ramp up. Two thirds of those sales are Chinese, followed by Europe at 17 per cent and the US at seven per cent.

China extends its lead over Europe and the US as it is the only country where EVs are on average cheaper to buy than comparable ICE models, with China also responsible for manufacturing more than two thirds (69 per cent) of all EVs.

The report warns that due to various policy changes in the US, such as phasing out EV tax credit, global EV adoption here could slow. While passenger EV sales in the US are still expected to rise – from 1.6 million in 2025 to 4.1 million in 2030 – the revised outlook falls short of previous BNEF projections, resulting in 14 million cumulative less sales over that period.

In the UK, EV update is accelerating faster than the global average, and is expected to hit 64 per cent of vehicles sales by 2030, compared with 42 per cent globally. UK EV growth has been driven by the government’s Zero Emission Vehicle (ZEV) mandate and openness to Chinese manufactures, with EVs projected to reach 35 per cent of UK car sales by 2025 and 40 per cent in 2026.

Additionally, UK EVs are set to account for 20 per cent of UK electricity demand by 2040, which is nearly double the global average at 11 per cent by 2050. But although UK residential electricity being among the most expensive in Europe (up 42 per cent since the end of 2020), UK EV drivers are still set to save an average of $387 (£288) compared to petrol.

UK EV public charging costs are the highest in Europe, with driver paying $400 (£297) to $900 (£669) each year depending on charger speed compared with petrol.

The EV fleet is expected to surpass the size of the ICE fleet in many countries over the coming decade, with Norway projected to reach this first (2030), followed by China (2033), California (2037) and Germany (2039).

Colin McKerracher, head of clean transport and energy storage at BloombergNEF, and lead author of the report said: “2024 was a landmark year for electrified transport, with electric vehicles hitting global sales highs and rapidly increasing adoption form emerging markets across Asia and Latin America. Despite these positive tailwinds, we see slower EV adoption in the short and long-term due in part to the changing landscape in the US. This shift in global adoption will also have major impacts on the battery industry, leading to overcapacity in manufacturing.