As the UK’s economic landscape shifts, the newly released Speedometer report from OC&C Strategy Consultants suggests that British consumers increasingly see cars as functional assets rather than symbols of status. This trend is particularly strong among younger generations, who care about affordability and functionality in their vehicle purchases. The report’s insights point toward a significant transformation in the EV market, where affordability will play a massive role in the future of EV adoption.
Shifting Priorities in Car Ownership
OC&C’s findings reveal that the allure of car ownership as a status symbol is on the decline in both the UK and the US. In the UK, the percentage of consumers who view cars as status symbols has fallen from 37% in 2021 to 31% in 2024, and in the US, this figure has dropped from 54% to 41% over the same period. Younger consumers lead this shift, with a 33% decline in those under 24 viewing cars as status symbols since 2018. By contrast, older generations show a smaller, though notable, decline of 15%.
Economic Pressures Reshape Buying Behavior
The report suggests that the fragile economy is driving consumers to reconsider their priorities, with functionality and price emerging as top considerations. According to Felicity Latcham, Associate Partner at OC&C Strategy Consultants, budget has become central to the buying process, with around 60% of consumers starting their car search with a budget in mind rather than focusing on specific makes or models. This trend is very strong in the UK and US, where monthly financing, leasing or EV salary sacrifice schemes are becoming the preferred methods of car ownership.
Car Ownership in the UK
While affordability concerns are high, the cost of motoring in the UK has declined in real terms over the past decade. Although general inflation has risen by 51% since 2014, motoring costs, including fuel and purchase prices, have only risen by 47%, a rate matched by average wage increases. This makes car ownership one of the more affordable transportation options for British consumers, even as insurance costs have increased significantly in real terms.
The Impact on EV Adoption
As younger generations gain purchasing power and prioritize budget EVs over brand, the automotive market is set for a shift. According to Latcham, “The future of the automotive industry will rely heavily on manufacturers providing competitively priced models for the mass market.” This shift will likely have the strongest impact on EV adoption, where consumer demand is outpaced by regulatory pressures pushing for increased sales.
The report reveals that consumers are increasingly open to considering Chinese EV brands if they come with a price advantage, with 22% of EV shoppers indicating that a discount of just £1,000 or less could prompt them to switch brands. This growing focus on affordability provides an opportunity for both suppliers and retailers to attract buyers with competitively priced models and alternative ownership options, such as subscription models or attractive financing packages.
The Speedometer report emphasizes that to maintain momentum in the face of shifting consumer attitudes, the EV industry will need to innovate. The decline in status-driven purchases and the focus on budget-friendly options underscores the demand for practical, cost-effective solutions. As EVs become more affordable and manufacturers diversify financing options, the industry may well find new ways to meet the demands of a generation focused on sustainability and cost-efficiency.
The findings from OC&C Strategy Consultants’ report indicate a new era for car ownership, where affordability, functionality, and budget-conscious choices are reshaping consumer attitudes.
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John is the Editor and Spokesperson for Electric Car Guide.
With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.
John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.
