Sales of electric vehicles (EVs) had been steadily climbing in recent times but that came to a shuddering halt this year.
Central Statistics Office figures have shown that while 15,129 new electric cars were licensed in the State between January and August, this represents a decline of more than 25 per cent compared with the same period last year. And while the total number of EVs on the Republic’s roads is now around 135,000, this recent fall means we are even further off the Government’s goal of having one million on the road by 2030.
The decline in sales of new EVs is not an exclusively Irish problem but a global one, according to the Department of Transport.
“The drop-off in EV sales seen in 2024 is not unexpected or unique to Ireland,” says a spokesperson for the department. “We do have over 135,000 EVs now on our roads, and with further improvements in technology and more brands and models entering the Irish market, offering more options and possibilities, we foresee more drivers choosing electric, as the industry continues to deliver a wider variety of EVs to suit all needs as we transition from the early adopter to the mainstream majority.”
Reasons offered for the acute slump range from price uncertainty to grant cuts, as well as the perennial problems of inadequate charging infrastructure and range anxiety. Brian Caulfield is a professor in transportation in the Department of Civil, Structural and Environmental Engineering at Trinity College Dublin and a fervent proponent of sustainable transport options. He says the decline in sales is hugely disappointing from in the context of the Government’s climate action plan and bad news for our climate emergency.
“EVs will have the biggest impact on meeting our targets in transport,” says Caulfield. “We needed sales to be up 25 per cent, so now we are 50 per cent away from where sales need to be this year if we want to hit those targets.”
Caulfield agrees that it is a “perfect storm” of problems that are making people reconsider going electric. Top of the list are concerns about Ireland’s paucity of public EV chargers.
“From my perspective we probably had more announcements this year about EV chargers than we have had EV chargers installed by the Government,” he says. “Every other month there is an announcement but it’s not clear to anyone which chargers these are [referring to].”
Caulfield adds that, as an EV owner, he felt forced to buy a newer car with a longer range: “I just couldn’t depend on the public charging infrastructure.”
Another big issue has been price uncertainty in the market, as several manufacturers of popular EVs, including BYD, Tesla and Volkswagen, have dropped their prices.
Early adopters have all got an EV now. Now you are trying to make the pitch to people not to buy a petrol or diesel or hybrid and these are the people who aren’t convinced
— Prof Brian Caulfield
“That makes people nervous about buying one as they think maybe another price drop is coming,” Caulfield says. “Buying a car is a huge purchase for people, so they are more hesitant now.”
Caulfield also believes that the surge in sales of recent years was driven by the early adopters: “These were the people who are environmentally conscious and had their own reasons for going electric, and they have all got an EV now. Now you are trying to make the pitch to people not to buy a petrol or diesel or hybrid and these are the people who aren’t convinced at all.”
Catherine Guy, CEO of vehicle leasing company NiftiBusiness, agrees with this reasoning, but believes the future looks brighter when it comes to EV sales.
“This is an evolving technology and the concerns that people may have had a couple of years ago may not be so significant now,” she says. “For example, technology continues to improve, so battery range is improving. Some cost adjustments have happened and the range of EV options available are much broader and ‘whole life’ costs typically compare favourably to combustion engine options.
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“Charging infrastructure has a way to go but our experience is that EV drivers with home or work charging facilities live a relatively stress-free driving life.”
Guy is hopeful that the new EV Charging Network Plan will finally develop and improve the existing public network of chargers.
Darren Kinsella, business development manager for new energy landscapes with Schneider Electric, agrees that improving the charging infrastructure must be a priority.
“Most EV owners tend to charge their vehicles at home, so we need more device locations and charging hubs in public places and en route locations like motorway services and ferry terminals,” he says. “More co-operation is needed between the Government, charging operators, building owners and other stakeholders to ensure an even distribution of sites across Ireland.
“Initially, these can be powered by localised microgrids – self-contained electrical networks powered by wind or solar energy – capable of supporting bidirectional charging. This will relieve pressure on the grid as we transition to more sustainable power supplies and infrastructures.”
The Department of Transport spokesperson says a new suite of initiatives to incentivise EV ownership will be announced as part of Budget 2025. Caulfield suggests the cut to the grant for installing at-home chargers was “shortsighted” and he also believes that rural dwellers – who do more driving – should receive higher grants than their urban counterparts. But Kinsella says the Government needs to go back to basics if it wants to restimulate sales of EVs.
“There needs to be a change in the culture of driving and EV ownership,” he says. “We need to educate the public about the tangible benefits EVs have to offer, including lower running costs, sustainability and energy efficiency.”
According to Guy, a specific incentive for the purchase of used EVs should be introduced to stimulate the turnover of used electric vehicles, while benefit-in-kind incentives should remain in place to support businesses who opt for EV fleets. However, she emphasises that she sees the recent decline in sales as merely a temporary blip.
“Regarding the recent slowdown and some hesitation in the market, that is temporary and almost an inevitable part of a cycle that you see with new technologies and products on the transition from early adopters to more mainstream adoption,” she says.