According to the RAC, the increased price of wholesale gas and electricity as a result of Russia’s invasion of Ukraine has meant that the cost of charging an EV has soared and could stop people from switching from petrol and diesel, as the cost advantage associated with EVs has diminished.
The UK is looking to ban the sale of new fossil fuel cars after 2035 and now the price as well as the availability of public chargers is raising concerns.
However, it’s not just in the UK that soaring energy costs are seen as threatening the future of the electric car.
Along with energy costs, a chronic shortage of parts, rising raw material costs and falling disposable incomes have meant that the German automotive industry has expressed alarm at the impact these trends could have on the production and sale of EVs.
Could investors start to pull back from the market with all that could mean for investment in the wider industry in what has been described as a moment of ‘acute danger’ for vehicle transition.
In fact, advocates of EVs’ are calling on the German government to ensure that the electricity price remains under the price of petrol, which they say is crucial to the future of electric cars.
Will the UK government look to do the same?
