Five predictions for the electric vehicle industry in 2023
Posted 15th February 2023
As the electric vehicle (EV) market continues to grow, and the 2030 ban on the production of new combustion engine cars in the UK approaches, what can we expect to see happen in the EV market over the next year?
There are an estimated 620,000 pure electric, non-hybrid cars on the road in the UK, (224,919 new ones sold in 2022 alone), according to HeyCar. But what can we expect from this rising market in 2023?
1 – More EVs, more chargers, happier customers
EV adoption will continue to accelerate in 2023. It’s expected that 1.8 million EVs will grace Britain’s roads and 26.7% of new car registrations will be electric ones in 2023 (according to SMMT (Society of Motor Manufacturers and Traders)).
EV usage and ownership will grow as both consumers and businesses begin to recognise that an EV can be a practical, sensible, and sustainable alternative to petrol or diesel.
The UK government has already pledged £1.6bn of investment through its Electric Vehicle Infrastructure Strategy, which promises 300,000 chargers on public roads by 2030 – over five times the current number of petrol and diesel pumps. With increasing numbers of charging hubs being opened by private networks such as GridServe, Osprey, BP Pulse and Shell, as EV ownership increases, so will the number of chargers available to them.
2 – More private investment from legacy car manufacturers
For a while now, legacy car manufacturers have been building their own EVs, and now some of the most high-end electric cars available aren’t Teslas, but Audis, Mercedes-Benz and Porsches.
In a further move to rival Tesla, Mercedes-Benz has announced that it will build its own ultra-fast rapid charger network Mercedes Benz ultra-fast charging announcement. Other manufacturers are likely to follow.
In terms of market share and profit per car, Tesla is by far the EV market leader Tesla Profit per car – Reuters. However, the company’s dominance is likely to be challenged in 2023 as several more cost-effective EV models from Chinese and other vehicle manufacturers enter the market.
3 – Reduced lead times for new EVs
Over the last few years, the lead times for the delivery of a new EV to a consumer’s door has increased considerably. According to The Daily Telegraph, some models in the UK have a wait time of up to 18 months.
These waiting times have been caused by various supply chain issues, including Covid-19 which impacted EV manufacturers and microchip production.
However, a post-pandemic hangover, increasing levels of inflation and supply chain challenges will continue to disrupt many industries. So renting, instead of buying, a new premium EV may be your best option for having an electric vehicle in 2023.
4 – Improved charging and battery technology
The advancement of EV technology will continue in 2023. Improvements in batteries and chargers will continue to make EVs more practical and affordable for the average consumer.
Most importantly, we can expect to see chargers get faster, become cheaper and more common to install. Amongst the fastest chargers are Tesla’s 250 kWh charger – which can take a Tesla from 10% to 80% in 25 minutes.
For batteries, solid state looks likely to be the near future. Solid state batteries have two to ten times the energy density of standard EV batteries. This will mean reduced weight, greater range, and faster charging.
5 – Fleets electrification
Business fleets are making a tentative transition to EVs, due to the infrastructure costs. This will accelerate in 2023 as businesses look to reduce carbon emissions from their operations as they approach various net zero pledges (either self-declared, or government mandated).
Management software will be able to optimise the charging schedule of each vehicle’s battery, ensuring each battery has enough charge to complete its required tasks; considering battery health, energy costs, the number of chargers in operation and other factors – hence minimising downtime.
If you’re considering taking your fleet electric, we can help.