How Trump’s Policies and Trade Wars Could Shape the EV Market in 2025

• How Trump’s Policies and Trade Wars Could Shape the EV Market in 2025
• The Electric Car Scheme shares its insights on the future of EVs.
  What impact will the Trump administration’s stance on subsidies have on UK electric car sales?
• Can EV manufacturers hit the milestones needed to meet the 2030 deadline?

The Electric Car Scheme has unveiled its projections for the UK’s EV landscape in 2025, outlining what these changes could mean for drivers, infrastructure, and the market as a whole.

A Turning Point for EVs

The year 2025 is expected to bring pivotal changes for electric vehicles. Donald Trump is set to take office again in January, pledging to end EV subsidies in the US. Meanwhile, in the UK, manufacturers are tasked with meeting a new target of 28% EV sales, marking a critical milestone on the road to the 2030 deadline.

Data from The Society of Motor Manufacturers and Traders (SMMT) hints at positive growth for EVs. In October 2024, battery electric vehicles accounted for 20.7% of all new car deliveries, a notable rise from 15.6% in October 2023. If this growth trajectory continues, the 28% target for 2025 might be within reach, signalling a major breakthrough for the market.

Used EV Market Gaining Momentum

As demand for new electric cars rises, the used EV market has also seen substantial growth. The Electric Car Scheme’s introduction of a used EV salary sacrifice programme has seen pre-owned vehicles surpass 50% of its sales.

Falling prices for second-hand EVs are removing barriers for many prospective buyers. According to research, cost remains the biggest hurdle for 68% of consumers. With more leases ending and vehicles becoming available at lower prices, the used EV sector is set to broaden access and drive further adoption.

Expansion of Charging Infrastructure

By mid-2025, the UK is forecast to have over 100,000 public EV charging points—ten times the number of petrol stations currently operating. This growth in rapid and ultra-rapid chargers could significantly ease range anxiety, which remains a key concern for 40% of potential EV buyers.

New advancements in home charging, such as off-peak smart charging and salary sacrifice charging schemes, are also expected to make EV ownership more economical. Combined with high petrol prices, these developments make EVs an increasingly attractive option for drivers.

Trade Wars Driving EV Affordability

The return of Donald Trump and the potential removal of US tax credits could ripple across the global EV market. Tariffs may drive up the cost of foreign-made EVs in America, prompting manufacturers to seek new markets like the UK. A boost in the availability of affordable Chinese-made EVs could play a pivotal role in accelerating adoption.

Thom Groot, CEO of The Electric Car Scheme, said: “The electric vehicle market is on the verge of a major transformation by 2025, and it’s an exciting time for both the industry and consumers. With battery technology advancing and governments around the world ramping up support, we’ll see EVs become increasingly accessible and affordable. As cheaper Chinese EVs become available, and the used EV market matures, we could see EVs available for less than £200 a month, a much more affordable price point.

“EV uptake was never going to be linear, like many things it goes through peaks and troughs, but we could be on the cusp of a significant jump as affordability increases rapidly. The UK has a long way to go to reach the 2030 target, but there is significant desire to achieve this from consumers. This is exactly why we set up The Electric Car Scheme, to help make it simpler and cheaper to get behind the wheel of an electric car.”