Leasing.com sees H1 fall in PCH EV demand

NEW data from Leasing.com shows that demand from motorists for new electric vehicles fell in the first six-months of 2023 as ICE vehicle demand increased.

The share of personal contract hire (PCH) sales enquiries for all electric vehicles (hybrid, plug-in and battery) fell from 34.6% in the first-half of 2022 to 22.9% this year. That represented a 33% reduction in personal demand for electric vehicles and the first fall seen by the car leasing comparison website since its records began.

Battery electric vehicles (BEVs) accounted for 9.9% of PCH vehicle enquiries in the first-half of the year, while hybrids and plug-in hybrids accounted for 10.3% and 2.7% respectively. The Tesla Model Y (pictured) was the most popular EV for customer enquiries.

Industry sales data from the Society of Motor Manufacturers and Traders (SMMT) mirrored the trend Leasing.com has seen. In June, 24,953 new EVs were registered to businesses and fleets and 6,747 to private buyers. Year-on-year SMMT data shows that the uptake in EVs continues to rise, but that the pace has slowed. 

In response to new car price increases, limited supply of some EVs and general cost-of-living expenses, many motorists continue to turn to ICE vehicles. The share of PCH enquiries for petrol vehicles stood at 58.6% in the first-half of last year, but this increased to 71.1% this year – representing a year-on-year uplift of 21%.   

Leasing.com’s 2023 data also revealed that motorists are opting for longer lease terms in an effort to spread their costs as much as possible. The most requested lease term so far this year was a four-year term compared to three years in 2022.