The global economy is feeling the ripple effects of US tariffs, with the UK automotive sector among those caught in the storm. The long-term ramifications of the proposed  25% tariff on car imports from the UK to the US are still largely uncertain. On a surface level, tariffs will predominantly affect luxury vehicles exports – brands such as Aston Martin and Rolls-Royce – but wider reaching repercussions on supply chains and consumer confidence will also impact the industry.  

So far, the UK government has been quick to announce an easing of fines and restrictions on UK car manufacturers regarding electric vehicle (EV) production. The UK’s target of phasing out petrol and diesel vehicles by 2030 is still in place, but policymakers have introduced a little flexibility to encourage industry growth.  

Macro-economic factors are complex and an important part of the picture, however whilst considering government policies and targets it is crucial to not lose sight of more fundamental factors, such as, how do UK consumers feel about transitioning to EVs and hybrids? 

Consumer Perspectives: What the Data Tells Us

• 58% of consumers with a driving license would consider buying an electric or hybrid car, and 9% already own one. 

• High-income earners (over £100k annually) are significantly more inclined to purchase EVs, with 70% expressing an interest. We also see regional differences in consideration, with lower-than-average consideration in the Midlands versus higher rates in London. 

What Drives or Deters Consumers?

When asked why they’d consider EVs or hybrids, the top reasons given by consumers were: 

• Environmental benefits (42%)

• Lower running costs (27%)

• Trust and like the technology (26%)

Conversely, the barriers include: 

• High purchase costs (26%)

• Expensive repairs (22%)

• Distrust the technology (19%)

A comparison with previous Clusters Insights surveys shows some noteworthy shifts: rising energy costs have contributed to an 11% year on year drop in the perception that EVs are cheaper to run, but trust in EV technology has climbed by 10%. Interestingly, while “too expensive to purchase” concerns have dropped by 9% from 35% to 26%, worries over repair costs have grown from 15% to 22%, highlighting that cost is likely to be an ongoing concern for consumers, even if focus shifts from one area of expense to another. 

Looking Ahead: Evolving Consumer Motivations

Our research also examined vehicle preferences when cost is not a factor: consumer desire is evenly split between old and new technology, with 47% preferring a petrol or diesel car and 45% picking an electric or hybrid vehicle. Only 7% of consumers did not have a strong preference for their future vehicle.  

As EVs and hybrids edge closer to mainstream adoption, consumer motivations are shifting. Early adopters may have jumped in with enthusiasm for innovative technology and sustainability, but now as more experienced owners, it is likely that their motivations will have changed based on their lived knowledge. As the market matures, practical considerations like cost, reliability, and infrastructure may dominate decision-making, and developing a strong and trusted brand identity becomes even more crucial to differentiate product offerings and build commercial advantages. 

Market research is a vital tool for tracking evolving perceptions and helping the automotive industry understand its audience in a fast-moving and rapidly changing landscape. At Clusters we’re dedicated to providing actionable insights to navigate the path ahead: find out more about our work in the automotive sector here.