UK slashes predicted takeup of electric cars by almost half

OBR analysis suggests higher energy prices and interest rates could reduce proportion of new cars sold that are electric from 67% to 38%

Britain has downgraded its forecasts for the takeup of electric cars over the next seven years as higher financing costs and rising energy prices threaten to cut the incentive for drivers to replace combustion engines.

The latest forecast from the Office for Budget Responsibility (OBR), released alongside the chancellor’s autumn statement, said that just 38% of new vehicles sold in the UK in 2027 would be electric, down from the 67% it predicted in March.