4 industry insights for 2025

The electric vehicle (EV) industry is poised for a pivotal year in 2025, with both obstacles and opportunities. As the government, car manufacturers, and consumers navigate an ever-changing landscape, this year will be shaped by the UK’s Zero Emission Vehicle (ZEV) mandate, which is still under review.  

This blog post will explore the key factors influencing the EV industry’s trajectory and several developments expected in 2025.  

A challenging year for EV sales

In 2024, BEVs made up 19.6% of the market share, falling short of the 22% required by the ZEV mandate. As this growth was largely attributed to fleet registrations, which represented a significant 62% of the BEV market, alongside heavy subsidies amounting to £4.5 billion, it is likely that car manufacturers will miss targets again, as they rise to 28% in 2025.  

However, the used EV market should continue to grow from strength to strength. With the latest SMMT figures demonstrating seven consecutive quarters of year-on-year growth, this trend should help debunk some of the myths and concerns surrounding EVs, improve public perception, and positively impact EV adoption.

Potential relaxation of fines for automakers

After the Department for Transport announced no car manufacturers would be expected to pay fines for missing the ZEV mandated sales target, I anticipate there will be a relaxation of fines for those that fail to meet the next targets rather than a relaxation of the ZEV mandate targets (I hope). At present, those fines are set at £15,000 for every ICE car and £18,000 for every non-compliant van in 2025.  

Significant increase in public EV charging infrastructure

2024 saw the public charging network reach 73,000 EV chargers, representing a 37% increase compared to the previous year. Building on this momentum, I expect infrastructure availability to increase significantly in 2025, bolstering public confidence and alleviating any remaining range anxiety.

Closing the price gap between EVs and ICE vehicles

Price parity between EV and ICE vehicles will start to become the rule rather than the exception. This will be supported by an anticipated decrease in EV production costs and falling battery prices, which are expected to drop by 50%  compared to 2023 prices by 2026. Together with the growing number of model options available to consumers, this should have a major impact on those in their decision-making stage.  

2025 is set to be an exciting year for the EV industry, but not without its challenges. At Zest, we’re proud to be working with public and commercial landowners to roll out the EV charging infrastructure needed to support EV adoption.  

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