EV Index latest: UK sets pace for EV adoption

The UK is setting the pace for EV readiness among the major European automotive markets, increasing its score in the Sophus3 EV Index for the sixth quarter running thanks to surging consumer interest. We know from our industry digital benchmarking partnership, eDataXchange, that digital consumer interest has long outstripped sales, but that is now at an all time high of 43% digital market share for EVs compared with 23% share for actual sales.

The EV Index, which gives each county a score for affordability, consumer interest and infrastructure, has shown some growth in the latest quarter for all eight markets covered, continuing the trend since 2022.

Emissions legislation across Europe means manufacturers are under pressure to find ways to sell EVs, with manufacturer discounting and high marketing spend still essential to stimulate consumer demand.

Key Market Movements

Leaders maintaining momentum: Norway and Denmark continue to score more than 100 in our index, which represents the tipping point where EVs are as easy to buy and own as their fossil fuel equivalents. The Netherlands made the most progress this quarter, with its overall index growing by 5 points. This advance was balanced across both Consumer Interest and Affordability & Choice pillars. Having built a ubiquitous charging network years ago, the Netherlands effectively removed infrastructure as a barrier to adoption, allowing it to focus on addressing other factors.

EV Index Q3 2025

Figures in brackets show change from Q2 2025

EU5 progress: Within the EU5 grouping of Europe’s largest car markets, the UK has moved ahead of both Germany and France with an overall score of 59. The UK’s slightly different regulatory environment – stricter on manufacturer requirements through the ZEV mandate whilst being friendlier to Chinese brand investment – appears to be having an effect. Spain has started to pull ahead of Italy, moving up to an index score of 34 versus Italy’s 30. The widening gap is particularly evident in the Affordability & Choice pillar, which remains one of the most critical factors for mainstream adoption in these price-sensitive markets.

Points of concern: Despite overall progress, the UK’s charging infrastructure pillar showed no growth this quarter, highlighting a potential problem with the pace of fleet expansion outstripping infrastructure availability. This bears close monitoring as it could become a constraint on further adoption if not addressed.

Registration Performance

The latest data from the ACEA shows that across the EU, EFTA and UK, BEV registrations reached an 18.1% market share for the year-to-date through September 2025, compared to 14.7% for the same period last year. This represents solid growth, though still falls short of the trajectory required to meet the original policy ambitions for the transition.

Regulatory pressure continues to shape the market. The UK’s ZEV mandate requires 28% of car sales to be zero emissions in 2025, whilst the EU’s CO2 emissions targets place similar pressure on manufacturers. We expect this regulatory framework to have a pronounced impact towards the end of the year as manufacturers seek to meet annual compliance targets, just as we witnessed in the final quarter of 2024.

A notable shift in market dynamics has seen Volkswagen displace Tesla as Europe’s top EV brand by volume, although the Model Y retains its position as the best-selling individual model. This changing of the guard reflects the maturation of the market, with established manufacturers beginning to realise the potential of their EV portfolios.

Perhaps the most striking development has been Chinese brands’ remarkable growth, with sales more than doubling year-on-year. MG and BYD are leading these gains, offering competitively priced models with strong specifications. We explored the implications of this competitive shift in greater detail in our recent webinar, which examined how Chinese manufacturers are reshaping the European EV landscape.

Policy and infrastructure

At the European level, the most significant policy development remains the extension of CO2 compliance from annual to three-year averaging across 2025-2027. This provides manufacturers with greater flexibility to manage their portfolio transitions, though critics argue it may slow the pace of change at a critical juncture in the market’s development.

The European Commission’s Industrial Action Plan continues to progress, with guidelines for fast-tracking EV charging connections to the grid issued during Q3 2025. These streamlined approval processes aim to address one of the practical bottlenecks that has slowed infrastructure deployment in certain regions.

At the national level, the UK government’s reinstatement of purchase incentives through the £650 million Electric Car Grant fund – announced in July – represents a significant policy reversal. The grant of up to £3,750 is available for new vehicles costing less than £37,000, targeting the mass market segment where price sensitivity remains acute. Early indications suggest this support is contributing to the improved consumer interest scores we observe in our Index.

A symbolic milestone was reached during the summer when Europe surpassed 1 million public charge points. More significantly, data from August 2025 shows that 77% of the EU’s main motorway network is now covered with ultra-fast charging capability, exceeding initial AFIR 2025 targets for long-distance travel infrastructure.

This progress demonstrates that, at an aggregate level, the charging infrastructure is keeping pace with fleet growth. However, significant regional disparities persist. As our Index data shows, whilst France and the Netherlands have achieved scores of 100 in infrastructure provision – indicating effective parity with ICE refuelling convenience – markets such as the UK, Spain and Italy continue to lag significantly behind.

Talking Point: The Used EV Market Crisis

During the past quarter, concerns about the second-hand EV market have intensified across the industry. What began as an emerging issue is now recognised as a fundamental challenge that threatens to constrain the entire transition to electric mobility.

The problem is straightforward: used EV values continue to decline, with BEVs depreciating more rapidly than their ICE equivalents across major European markets. Analysis shows BEVs face particular pressure in 2025 due to stock saturation of outdated 3-4-year-old models that lack the latest battery technology, range capabilities, and charging speeds that current buyers have come to expect.

This creates a vicious cycle. As residual values fall, the cost of financing new EVs rises, making them less attractive to both retail and fleet buyers. Simultaneously, the absence of government incentives or tax benefits for used EV purchases means that second-hand buyers – who represent the vast majority of car purchasers – face a choice where an EV remains simply more expensive than its ICE alternative, with no financial sweeteners to offset that premium.

The implications extend beyond individual purchasing decisions. Fleet operators and leasing companies, which account for the majority of new EV registrations, are increasingly exposed to residual value risk. This financial uncertainty is already affecting their willingness to commit to aggressive EV adoption targets.

Addressing this challenge requires fresh policy thinking. Whilst governments have been relatively generous in supporting new EV purchases, the used market has been largely ignored. Strategies worth considering include targeted grants or subsidies for used EV purchases, low or zero-interest loan programmes, and standardised battery health certification to tackle anxiety about purchasing older electric vehicles.

Without intervention, the used EV market risks becoming a significant constraint on the transition – dampening demand for new EVs whilst failing to accelerate the replacement of the existing ICE fleet with affordable electric alternatives.

The EV Index from Sophus3 provides an objective measure of the readiness of the vehicle market to enable and encourage the mainstream adoption of electric vehicles (EVs).

The index is formed from three pillars, each measuring distinct factors that help or hinder electric vehicle acquisition. First of these is the consumer appetite to buy electric, the second is the capability of the automotive companies to supply these cars, and the third is the availability of suitable charging infrastructure.

A score of 100 represents parity in the attractiveness, availability, pricing and usability of an electric car compared with a conventionally fuelled vehicle.

We publish the EV Index for the UK, Germany, France, Italy, Spain, The Netherlands, Denmark, and Norway.

A fuller explanation of the EV Index from Sophus3 can be found here.