The UK has been declared the fifth best-prepared market on the earth for the electrical car transition in EY’s newest EV Nation Readiness Index.

Nonetheless the UK’s head of automotive at EY has warned there may be “a protracted strategy to go” earlier than the UK matches the very best performers for incentives, extremely speedy charger provide and regulation.

The EV Nation Readiness Index covers each battery electrical autos and plug-in-hybrids and assesses 20 key markets from world wide based mostly on elements associated to provide, demand and regulation, together with analysing initiatives, targets and methods.

China stays at primary, with Norway remaining second. The US has climbed 4 locations to 3rd, dislodging Sweden into fourth.

The UK’s rankings for provide (seventh to eighth) and regulation (third to fourth) each fell by one place year-on-year, however the nation’s general rating stays unchanged attributable to important demand for brand new EVs and the 2030 ban on the sale of latest ICE autos.

Maria Bengtsson, UK electrical car lead at EY, stated: “It’s encouraging that the UK stays one of many frontrunners in pursuit of an efficient transition in the direction of EV adoption, however there may be nonetheless scope for important enchancment.

“Because the clear international chief in response to the Index, China has demonstrated the influence that applicable regulation together with a localised provide chain and strong infrastructure implementation can have.

“There are classes to be discovered from that for the UK market, and the onus will proceed to be on OEMs and the Authorities to collaborate on this problem.”

She added potential delays to and a scarcity of readability on the zero emissions car (ZEV) mandate, together with uncertainty round plans and progress on the availability facet are explicit challenges the UK continues to navigate, whereas regulatory incentives have room for enchancment, notably in comparison with laws caused in different competing markets.

EY stated the UK’s penetration – BEV and PHEV gross sales as a proportion of whole gentle car gross sales – is predicted to rise from 21% final 12 months to 26% this 12 months, which is above the typical (19%) throughout all 20 markets.

Nonetheless, this determine stays a great distance behind the frontrunners Norway, who’re forecast to see 81% EV penetration this 12 months, with Sweden (53%) ranked second and Netherlands (35%) third.

The EY report highlights a marked problem for the UK’s EV transition is a scarcity of quick charging infrastructure.

Though the sizes of the 2 markets are vastly completely different, the truth that China accounted for almost 90% of worldwide fast-charging inventory in 2022, with the UK solely accounting for 0.8%, highlights the magnitude of the problem.

David Borland, UK & Eire automotive chief for EY, added: “The resilient development the UK has seen in new automobile registrations in latest months has been supported considerably by rising EV gross sales.

“Certainly, the rising demand from customers has performed a key function within the UK retaining its standing as a world chief for EV readiness, however challenges persist.

“Given the declining residual values of EVs and the distinction between fleet and retail gross sales together with the continuing infrastructure hurdles highlighted by this report, such because the UK trailing Europe for the variety of cost factors per EV, the longevity of robust demand and the constructive influence it’s having on the UK’s EV transition prospects seems unsure.

“Going ahead, it is going to be important for not solely the variety of EV chargers within the UK, however the location and velocity of charging infrastructure, to be prioritised. Whereas there are positives, there’s a lengthy strategy to go for the UK to compete with the world’s main EV markets, notably in relation to provide and regulation.

“Particularly, regulatory incentives and help have room for enchancment if the UK is to be seen as a prime vacation spot for attracting International Direct Funding within the EV area.”