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EV myths and the transition to electric transport​

The UK’s shift to electric vehicles (EVs) and transportation is accelerating.

Battery electric vehicles (BEVs) made up 19% of new car registrations in 2024 while new registrations of petrol, diesel and hybrid cars dropped slightly. Yet combustion engines still dominate, making up more than 90% of all cars on the road. Their impact on climate, air quality and health remains significant.

BEVs are a critical technology that can deliver a clean, sustainable transport system. Lloyds is committed to supporting the transition to BEVs. We have provided over £10 billion in financing for EV and plug-in hybrid vehicles since 2021 and have undertaken significant work to challenge myths and provide evidence-based insights on BEV adoption.

This report, developed in partnership with Frontier Economics, outlines new evidence on consumer perceptions and the extent to which misperceptions may be holding back adoption across different groups of people.

This study draws on an online survey of 2,187 UK individuals who purchased a car within the last two years. Respondents answered questions about BEV features and tested their perceptions. Results were benchmarked against real-world data to quantify perception gaps; and segmented by demographics and behaviours to identify the groups most affected.

The findings highlight where misperceptions are strongest and where action is most needed. They provide a guide for the Government and industry to keep the transition on track. Addressing these misperceptions will ensure that the move to cleaner transport is fair, inclusive, and benefits everyone in the UK.

In this report

 

Foreword by Nick Williams

The transition to electric vehicles (EVs) represents a pivotal moment in our journey towards a sustainable future. As we navigate this transformative period, it is crucial to ensure that the benefits of EV adoption are accessible to all segments of society. This report, illustrates a critical finding: lower-income individuals, who stand to gain the most from the use of EVs, are the least informed about them.

Read the full foreword

Executive summary

Our analysis shows that consumers have a good understanding of some of the main expenses of owning a battery electric vehicle (BEV), but they hold significant misperceptions around key features of what it is like to own a BEV, which are likely acting as barriers to the uptake of BEVs in the UK.​

Cost of owning a EV

Consumers overestimate the price of entry-level electric vehicles and do not realise how inexpensive home charging is.

Battery life

Consumer expectations of a typical battery lifecycle and how much capacity it loses over time are significantly below the reality.

Charging at home

Many consumers are not aware that they could charge a electric vehicle at home.

Charging on the go

The coverage of the UK charging infrastructure is much better and charging on the go much quicker than people realise.

Fire risk perceptions

Consumer misperceptions about EV car fires are strong.

The perceptions of lower income households towards BEV use are significantly more negative than those on higher incomes. But having experience driving a EV, or even knowing others who do, has a huge impact on resolving most misperceptions.

Key policy suggestions and stakeholder actions to address misperceptions and improve EV uptake​

  • Confidence in BEVs (new and used) is vital in the transition to electric vehicles - Government should develop and implement a ‘battery health testing’ standard to provide confidence to consumers when buying a second-hand EV. ​
  • Related, Government could deliver an awareness campaign to tackle misconceptions and demonstrate how convenient using a BEV is. ​
  • Further Government support in financial incentives to lower-income families and further investment in charging infrastructure would also be welcome.​
  • Industry could further improve the dealers’ understanding of BEV features and highlight the ongoing savings from using a BEV; as well as improve public awareness of charging infrastructure.

Policy context

Towards a cleaner, stronger economy

1. The UK has set ambitious targets for the green transition in transport, with a progressive zero-emission vehicle mandate that will culminate in a ban on the sales of new petrol, diesel and hybrid cars by 2035.

To deliver this, the Government has introduced several measures to promote EVs, ranging from investment in charging networks to incentives that support consumer adoption.

2. More recently, the policy focus has widened to view the transition not just as an environmental and public health necessity, but also as a driver of economic growth.

The Leeds reforms announced at this year’s Mansion House identify the financial services industry as central to driving UK competitiveness, with sustainable finance and the green transition identified as priority areas for investment.

3. This positions the UK’s transport decarbonisation agenda not only as a route to Net Zero, but also as a means to boosting the economy, improving wellbeing, and establishing the UK as a global leader.

Achieving this will require coordinated action from the Government, the transport industry and financial services firms.

As a leading financial institution, we are committed to playing our part in driving investment, empowering consumers to make informed choices, and ensuring the benefits of the transition are shared across society. This report is part of that contribution.

Consumer awareness and misperceptions of electric vehicles
 

Initial cost, range anxiety and home charging concerns remain the most important barriers to EVs

  1. When people that recently purchased a car were asked to state the most important barriers for not choosing a BEV, the initial cost, range anxiety and the lack of home charging capability surfaced as three the most important issues.
  2. Hassle of charging, not having enough charging stations and low mileage at full range were also stated as important.
  3. In this report, we explore the potential misperceptions around these six main barriers as well as charging time and the lifecycle of EV batteries.
  4. While not explicitly stated as a top barrier, we also explore consumer perceptions around fire risk of EVs.
See the stats
Bar chart showing that most people think a new BEV costs £36k–£40k.

Consumers have a good understanding of the expenses associated with EVs

Consumers have a good sense of the upfront expense of a BEV. When asked to estimate the price of a typical new BEV, most people guessed it would cost around £40,000 – which is close to the true value of £43,419. 

The charts in this report show the distribution of survey responses as well we the median response and true answer.

Graphs showing that most people think EV home charger costs £500–£1,000 and annual BEV servicing costs £500–£1,000.

People also have a good understanding of some of the other costs associated with having a EV.

Perceptions of how much it costs to install EV charging equipment at home are very close to reality – the median answer in our survey was £1,000, which is in line with the average cost for this equipment.

Consumer perceptions of the annual servicing costs of BEVs are also close to reality.

  • Consumers overestimate the cost of entry-level EVs


    And don't realise how inexpensive home charging is.
     

    Graph showing that most people think the cheapest new five-seater EV costs £16k–£20k

    The average consumer thinks that the cheapest new five-seater BEV on the market costs £20,000, when in reality it is 25% cheaper: the Dacia Spring costs just £14,995.

    Less than 15% of consumers thought that the price of the cheapest BEV currently available is between £10,000 and £15,000 and most guessed that it would be significantly more.

    A graph showing that most people think monthly home charging costs £21–£40, but the true cost is £12

    The higher upfront cost of EVs compared to petrol vehicles can be offset by the lower ongoing costs of charging at home overnight.

    78%

    of electric vehicle drivers surveyed used a public charging point less than twice last month.

    Many consumers are not aware that they could charge an electric vehicle at home
     

    Considerations around home charging are very important to consumers. Not being able to charge an EV at home was the third most important stated barrier to BEV take-up.

    22%

    of consumers said that not being able to charge at home was among their top three reasons for not purchasing a EV.

    A chart showing that most cars are parked in a private driveway or garage (48%), followed by on the street (36%).

    But out of consumers that chose this option, nearly half keep their car on a private driveway or in a garage, which means that they would most likely be able to install BEV charging equipment at home.

    Consumers significantly underestimate how wide the coverage of the UK EV charging infrastructure is

    Most people think 71–80% of motorway service stations have EV chargers, but the true figure is 97%.

    People on average estimate that only 70% of UK motorway services stations have EV chargers. The true figure is 97%.

    Only 15% of consumers guessed that over 90% of UK motorway services stations have EV chargers.

     

    Reason for not being able to use a public charging point

    • Even though the coverage of EV charging points is good, they may not always be available for drivers to use.
    • Our survey asked consumers to think about all the times when the first charging point that a EV owner attempted to use was not available and the frequency of different reasons behind it. The results are compared to the real-world experiences of BEV owners in our sample.
    • Non-electric vehicle owners think that EV chargers are unavailable due to being used by another vehicle more often than they actually are: 41% vs. 25% of the cases.
    • At the same time, they underestimate how frequently BEV drivers decide against using a public charging point due to it being too expensive.

     

     

    Charging on the go is much quicker and EV ranges are better than people realise

    Most people think it takes 41–60 mins to charge a BEV to 80%, but the true time is 32 mins.

    Consumers believe that it takes much longer​ to charge a BEV using an ultra-rapid charger than it does: the average estimate to charge a BEV​ to 80% was 1 hour, when in reality it takes only about half that time.​

    Most people think a BEV goes 201–300 miles on a full charge (true: 311), and a petrol car 301–400 miles on a full tank (true: 458).

    People underestimate the range of BEVs: a typical BEV can go 311 miles on a full charge, but the average estimate in our survey was 250 miles. Over a third of people thought that the typical BEV had a range​ of less than 200 miles. ​

    Misperceptions over range are not limited to electric cars. The average estimated range for a comparable petrol car was 400 miles, when in reality it is closer to 460 miles. But the much lower estimates for BEVs may create more ‘range anxiety’ for consumers.

    Expectations of a typical battery lifecycle are significantly below the reality

    Most people think it takes 41–60 mins to charge a BEV to 80%, but the true time is 32 mins.

    People think that the battery of a typical BEV lasts only 8 years before it needs to be replaced. This is likely to be impacted by the 8-year battery warranty period. ​

    In reality, some sources suggest modern batteries may outlast the vehicle itself – with an average lifespan of 18 years. Less than 5% of consumers guessed that batteries could last 18 years or more.

    44%

    of consumers believe that a petrol car can do the same number of miles on a full tank after 10 years of use as a new one.

     
     
     
     
    • This is further reflected in consumer opinions​ of battery degradation over time. ​
    • Reductions in BEV range over time are smaller than people think they are. ​
    • On average, respondents thought that a typical BEV with the original range of 300 miles could only do 200 miles (33% less) after 10 years of use.​
    • In reality, BEVs only lose about 20% of their range over a 10-year period and the expected range would be around 240 miles. ​
    • By contrast, 44% of respondents believed petrol cars lose no range at all, even though petrol and diesel cars can also experience reduced efficiency and higher fuel consumption as they age.

     

    Consumer misperceptions about electric vehicle car fires are commonplace

    Most people think BEV fire risk is 0–60 per 100k cars, but the true figure is 160.

    Electric car fires have received significant media attention in recent years and have potentially contributed to the barriers of BEV update.

    Consumers significantly overestimate the fire risk of BEV: the actual rate is just 41 incidents per 100,000 cars, but the average estimate in the survey was 160 incidents per 100,000 cars – the same as for petrol cars. In reality, the risk of a BEV catching fire is much lower than that of a petrol car.

​​Insights​ from key consumer segments

  • Perceptions of lower income households towards BEV features are negative 

    Compared to higher income households.

    In addition to underestimating the savings from home charging a BEV, lower-income households are more pessimistic towards other elements ​of BEV use. ​

    While consumers generally overestimate the time it takes to charge a BEV​ to 80% using an ultra-rapid charger, the lowest income groups believe​ that this takes significantly more than an hour, while those on the highest incomes believe the figure to be closer to an hour.

    Those on lower-incomes also tend to underestimate the range of a typical BEV more than other consumer groups.​

    Among those with a household income under £15,000, the average person expects the difference in the range between a petrol car and a BEV to be 200 miles while other groups believe it to be around 150 miles.​

    In practice, the actual difference is about 150 miles (with an average of 458 miles for petrol cars versus 311 miles for BEVs).

  • Having experience driving an EV has a huge impact​ on resolving most misperceptions​

    Our analysis shows that people that have experience driving a BEV hold significantly more positive attitudes towards BEVs and have fewer misperceptions around their use. This is also true to a lesser extent for hybrid drivers.​

    This result holds across perceptions of the cost of charging, the coverage of charging equipment and the speed of charging, range, battery performance and degradation.​

    This is to be expected given these drivers will have real world (and positively reinforcing) experience of using a BEV.

  • Knowing others who own a BEV has similar effects​

    Even the consumers who do not own a BEV themselves are more positive and accurate in their perceptions towards BEVs if they have friends or family members who own a BEV.​

    This is broadly true across perceptions of the cost of charging, the coverage of charging equipment and the speed of charging, range, battery performance and degradation.​

    This suggests that BEVs becoming more commonplace is likely to generate positive network effects where consumer perception barriers can be overcome simply by being more exposed to BEVs through other people in their lives.

Lower incomes consumers underestimate​ how much they could save by switching to a EV​

Lower-income groups think charging to 80% takes up to 120 mins, but the true time is 32 mins.

The perceptions of lower income households towards BEV use are significantly more negative than those on higher incomes.​

This is evident in the difference in the perceptions towards the cost​ to charge a BEV at home overnight between different income segments. ​

Although all consumer segments overestimate how expensive home charging is, lower income households expect BEV charging costs to be much more (£50/month) than those on the highest incomes (£30/month).

People think BEV annual cost is £600 vs petrol £1,104, but actual BEV cost is £144.

​A typical driver spends £92/month or £1,104/year on petrol. This equals about 4% of the annual net earnings for a family with a household income of £30,000.​

The average savings that lower income groups would expect to make from switching from petrol to a BEV would be £504/year, assuming all charging takes place at home overnight.​

The real savings that lower income groups could realise on average are £960/year, or nearly 2.5% of the net income for someone earning £30,000.

Takeaways for the Government and industry
 

This report highlights important considerations for the future design of BEV incentives​

The Government has made a clear commitment to transitioning the UK away from petrol and diesel cars towards BEVs and this is supported by a wide range of existing policies to achieve Net Zero.​

This report has highlighted key areas where consumer uptake of BEVs is limited not purely by factual considerations but may instead be driven by misperceptions. The misperceptions fall into five areas:

  • Cost of owning an EV​
  • Battery​ life
  • Charging on the go
  • Charging at home
  • Fire risk perceptions

1. We find that those earning less than average and have the most to gain from switching from petrol to much cheaper BEV home charging hold the strongest misperceptions and negative attitudes towards BEVs. Exposure to BEVs, on the other hand, whether direct or through friends and family, goes a long way to dispel these myths. ​

2. Given these network effects, it is important for the Government and industry to ensure that as BEV adoption grows, some consumer groups – particularly those that do not spend time with people that already own BEVs – do not get left behind.​

3. Given these findings we propose a set of policy recommendations for the Government to take forward to support the work already being done as it seeks to accelerate the electric transition on the nation’s roads. We also outline the actions that the industry could take to address the barriers and misperceptions highlighted in this report.

Download the report

FAQs about electric vehicles