Are affordable EVs catching on in the UK?

Electric cars are a constant source of debate, not just in the UK, but globally. Most drivers are well aware of the need to electrify, yet for one reason or another, plenty are still reluctant to make the switch.

And that’s understandable. Change doesn’t come naturally to most of us. We’re creatures of habit, and when petrol and diesel cars have been the blueprint for generations, it’s hard to break the cycle for something that still feels “new”, even if it’s been around for years.

Take the Toyota Prius for example. If you’d asked an early adopter back in the late 1990s whether electric cars would be the majority almost 30 years later, they would’ve said “absolutely”. 

But that’s not quite how it’s played out. Despite the noise, the tech, and the growing number of models on the road, a large chunk of drivers in 2026 still aren’t sold on going electric.

This is a problem which the entry-level EV plans to solve. It’s a part of the market that’s been quietly bubbling under the surface for a while now, and the idea is simple: make electric cars feel attainable. Lower the upfront cost and remove the financial barrier that stops so many people from even considering them in the first place.

They sound great in principle, but are entry-level EVs actually having an impact? We take a look below. 

An entry-level EV is pretty self explanatory. It’s an electric car that’s available at an entry point in the market and at a much more affordable price than EVs in the past. 

The Dacia Spring is one of the best examples. Available brand new at around £15,000, it undercuts the price of the majority of its counterparts and allows drivers to make the switch to electric while also saving some money. 

The Spring isn’t alone, a whole range of manufacturers have added entry-level EVs to their line-ups in the last couple of years: 

• Citroen Ami 
• Vauxhall Frontera Electric
• Leapmotor T03
• Renault 5 E-Tech 

According to a PwC study, EV adoption in the UK is being held back by a lack of affordable options, and 70% of respondents expect their new EV to have a price point of under £34k. 

If we zoom in on UK drivers who are actively considering an EV, PwC found that key criteria includes price (65%), safety (50%), and battery range (44%). However, the hesitations are just as clear, with recharging time (54%) and battery lifetime (42%) major blockers. 

This is the tension in a nutshell. The appetite to go electric is there, but it’s so very fragile. People want the benefits of driving an EV, yet a couple of practical worries can quickly outweigh the benefits. 

The entry-level EV solves this by making the switch seem less of a financial risk, but it also shows how hard the industry has got it. Take the Leapmotor T03. On price, it’s excellent, available at around £16,000. 

But once you dive deeper, the doubts creep in with an official range of up to 165 miles and maximum power of 75kW. 

This is absolutely fine for nipping from A to B, but if you spend a lot of time on the road, it might feel like a risk. 

Whether entry-level EVs actually take off in the UK comes down to the wider EV landscape, and there’s currently three big forces shaping this. 

In July 2025, the UK government launched the Electric Car Grant, a £650 million fund designed to reduce the cost of new electric cars priced at £37,000 or below.  This matters because it tells you where the government focus sits, not on premium EVs, but on the models likely to tempt everyday drivers.

Just as the Electric Car Grant was taking shape, a new electric vehicle excise duty tax was introduced, which charges EV and plug-in hybrid drivers a pay-per-mile charge from 2028. 

For entry-level EVs, where their USP is being cheaper overall, anything that muddies the running-cost story can slow momentum. 

The other major factor is the Zero Emission Vehicle (ZEV) mandate, which requires manufacturers to sell a rising proportion of zero-emission vehicles, ramping up to 100% by 2035. 

The impact of this isn’t just the targets, it’s the behaviour it caused. When brands have to hit rising EV quotas, they’re more likely to prioritise bringing cheaper models to market faster. 

If you want to see whether entry-level EVs are catching on, the leasing market is one of the best places to look. With so many options available to customers, people go for the deals that make sense, and this presents an opportunity to view shifts in the market. 

Entry-level EVs only started appearing in meaningful numbers in 2024, so the impact is still playing out. But even in that short time, we’ve seen EV leasing demand moving in the right direction. 

At Nationwide Vehicle Contracts, we’ve seen a 29% increase in all EV leases arranged from 2024 to 2025. If we take a closer look, we’ve seen a 12.9% increase in Volkswagen electric vehicles, fuelled by an 89% increase in the Volkswagen ID.3, which is positioned as their most accessible EV (as of writing this). 

This suggests that for many customers, they’re focusing on the price of the EV, rather than whether or not they believe in them. Yes, people might still have concerns about battery life, range, and practicalities (like the study by PwC showed), but if the deal stacks up, they’re more than willing to go for it. 

It also hints at something else. The market doesn’t necessarily need drivers to fall in love with EVs. It just needs EVs to become the sensible option at the right price. This is where entry-level EVs can help, by making the switch to electric feel realistic for people who are on the fence. 

According to the SMMT, the UK registered just over 2 million new cars in 2025. Within that, battery electric cars hit 473,348 registrations, a 23.9% increase on 2024 and taking them to 23.4% of the market share. 

What's even more telling is that hybrid electric vehicles rose 7.2% and plug in hybrids surged 34.7%, making them the fastest-growing powertrain in 2025. 

These numbers show that more drivers are moving toward electrified options, even if they're not ready to go fully electric yet. Yes, a lot of this progress is down to massive manufacturer investment and the UK's ZEV mandate, but the more choice there is, the more likely entry-level EVs will catch on. 

The future does look bright for entry-level EVs. Between manufacturer support and targeted government incentives, more drivers are seeing electric cars drop into affordable price territory, which is exactly what this part of the market needed.

Over the next 12-24 months, we’re likely to see even more manufacturers leaning into affordable EVs, because it’s still a relatively untapped space. 

That said, it's not going to be smooth sailing. Entry-level EVs still come with drawbacks, and things like range limitations, slower charging, and budget tech will play a role in drivers decision making. There's also the planned pay-per-mile charge, which adds another layer of uncertainly for those weighing up an EV. 

So, yes, EVs are catching on, but it's still early days. They're winning over urban drivers and budget-conscious customers, while others might opt for a hybrid or plug-in. 

Either way, the landscape is moving quickly. With more models in the pipeline and pricing getting more competitive, 2026 is shaping up to be a defining year for the affordable EV.

Looking for more deep dives? Head over to the Deep Dives and Explainers section of our blog, or for leasing-specific advice, browse our latest Leasing Guides. 

Fancy an entry-level EV? Head over to our Electric Leasing Hub, where you’ll find our latest deals and advice.