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 “an extended strategy to go” earlier than the UK matches the best performers for incentives, extremely fast charger provide and regulation.

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

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 total rating stays unchanged as a consequence of important demand for brand new EVs and the 2030 ban on the sale of latest ICE automobiles.

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 based on the Index, China has demonstrated the impression that acceptable regulation together with a localised provide chain and sturdy 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 provision facet are specific challenges the UK continues to navigate, whereas regulatory incentives have room for enchancment, significantly in comparison with laws caused in different competing markets.

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

Nonetheless, this determine stays a good distance behind the frontrunners Norway, who’re forecast to see 81% EV penetration this yr, 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 totally different, the truth that China accounted for practically 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 progress the UK has seen in new automotive registrations in latest months has been supported considerably by growing EV gross sales.

“Certainly, the rising demand from shoppers 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 impression it’s having on the UK’s EV transition prospects seems unsure.

“Going ahead, it will likely be important for not solely the variety of EV chargers within the UK, however the location and pace 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, significantly in relation to produce and regulation.

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