Well, there are a few reasons why electric car sales are exploding in the UK, where they now account for nearly 10% of auto sales. I think awareness still hasn’t caught up to the many benefits of an electric car or the potential for financial savings compared to a “similar” fossil-fueled car, but consumers are waking up to these matters. On the latter topic, I’ll try to do my part again to bring some insight to this matter to more Brits. In December, we published an exclusive look at a fresh report from Bank of America Merrill Lynch. The report compared some forecasts of the 3 year cost of ownership of a few electric vehicles and their most similar fossil-fueled competitors. The EVs included the Tesla Model 3, Nissan Leaf, Audi e-tron, and MG ZS EV.
We’ve published numerous analyses of our own on the total cost of ownership of the Tesla Model 3 and Volkswagen ID.3 compared to top gasoline competitors. However, if you don’t trust research from CleanTechnica, perhaps you’ll find the work of a major international financial firm more palatable. A recently published report from Bank of America Merrill Lynch (BAML) that was passed along to CleanTechnica dove into this topic for the UK. The results will not be surprising to regular CleanTechnica readers, but they are dramatic nonetheless, especially when considering coming incentive changes in the country. A few quick notes before diving in here: Average miles driven in this analysis are lower than for most of CleanTechnica‘s because the analysis is for the UK and people drive considerably less in the UK than the US. Additionally, the analyses are for 3 years, whereas CleanTechnica‘s were for 5 years, and since EVs save consumers money when it comes to operations and maintenance, that means the savings should be higher if you extend the UK comparisons out to 5 years. The UK’s coming incentive change for EVs is one of the most interesting and important parts of the analyses, but as you’ll see, EVs are already winning even without the incentives. That said, to compel change (which humans tend to be naturally averse to), bigger savings and the limited availability of subsidies are very important.