Electric Vehicle Sales Forecast for the UK: Integrating Machine Learning, Time Series Models, and Global Trends
Abstract
1. EV Market Overview
1.1. Global EV Market
1.2. China’s EV Market
1.3. Japan’s EV Market
1.4. UK’s EV Market
2. Impacts on the UK EV Market
2.1. Positive Impacts of Global EV Expansion
- Increased Model Availability: As Chinese automakers scale up production, a wider variety of EV models—particularly affordable compact and mid-range vehicles—are becoming available in overseas markets. Brands such as MG (a Chinese-owned manufacturer) have already established a presence in the UK, offering lower-cost EV options to British consumers [13].
- Battery Cost Reductions: China is the global leader in lithium-ion battery production. Economies of scale and technological advances in Chinese battery manufacturing are contributing to a steady decline in global battery costs. This trend benefits the UK both directly—through cheaper imported EVs—and indirectly, by lowering production costs for UK- or EU-based manufacturers using imported Chinese battery components.
- Global Competitive Pressure: Strong sales performance in Asia has incentivized traditional automotive manufacturers to accelerate their electrification strategies. This includes more aggressive product rollout plans in international markets, including the UK. As a result, British consumers may gain access to a wider variety of competitive EV options at lower prices.
- Technology Spillovers: Heavy R&D investments by Asian manufacturers are driving advancements in areas such as battery longevity, fast charging, and integrated vehicle software. These innovations are likely to spill over into global markets, raising the overall technological standard of EV offerings in the UK.
- Market Awareness and Momentum: Success stories from China and Japan increase global public confidence in EV technology and accelerate consumer readiness in markets like the UK. The normalization of EV adoption abroad may enhance social acceptance at home.
2.2. Challenges and Potential Drawbacks for the UK EV Sector
- Loss of Domestic Market Share: With Chinese and Japanese EV brands entering the UK market, domestic manufacturers such as Jaguar and other UK-based firms face mounting competition. These brands may lose market share to lower-cost, high-spec international offerings, reducing profits and deterring further investment in local EV development and production.
- Battery Supply Constraints: As global demand for lithium-ion batteries rises—especially from major players in China and Japan—UK automakers may face challenges in securing sufficient battery supplies. Limited access to these critical components could restrict production capacity and delay vehicle deliveries.
- Import Dependence: An influx of competitively priced imported EVs could undermine the growth of domestic manufacturing. If the UK becomes primarily an EV importer rather than a producer, many of the economic benefits of the electrification transition—such as employment, innovation, and capital investment—could shift abroad.
- Geopolitical Tensions and Trade Risks: Growing economic rivalry in the EV sector, particularly with China, raises the risk of future trade disputes. Tariffs, export restrictions, or diplomatic strains could disrupt supply chains and negatively impact the pricing and availability of EVs and components in the UK market.
- Consumer Price Pressure: The cost advantage of Chinese EVs—produced at up to 40% lower cost than European models—may drive down price expectations across the UK market. While this benefits consumers in the short term, it may pressure domestic manufacturers to cut costs in ways that are unsustainable or damaging to quality and labor conditions.
- Brand Perception and Trust: Despite growing sophistication, some consumers may remain hesitant to adopt vehicles from relatively new or unfamiliar brands, particularly those with a legacy of perceived lower reliability. Overcoming these perceptions will be essential for the widespread adoption of imported EVs.
- Policy and Regulatory Risks: Domestic policy shifts—such as changes to tax incentives, vehicle grants, or emissions regulations—could alter the competitive balance between foreign and domestic EVs. Likewise, if the UK must align with new international standards driven by dominant global players, this could impose additional adaptation costs on UK manufacturers.
3. Prediction and Future of EVs in the UK
3.1. Data Preparation
- Seasonality: Monthly seasonality captured via Fourier terms; UK public-holiday effects enabled in Prophet. All series are converted to monthly frequency and log-transformed where appropriate to stabilize variance.
3.2. Model Selection and Investigation
- SARIMAX: A classical statistical approach explicitly designed for forecasting time series with autocorrelation and external influences [24].
- Prophet with Exogenous Regressors: An additive model that decomposes the time series into trend, seasonality, and regressor components (e.g., battery price and policy effects), offering strong interpretability and robustness to missing data [25].
- Extreme Gradient Boosting (XGBoost) with Time Embeddings: A nonlinear machine learning model that captures complex interactions by ingesting lagged sales, calendar variables, and external drivers, though it lacks native time extrapolation [26].
3.3. Mathematical Formulation of Models
3.3.1. Prophet Model with Regressors
3.3.2. SARIMAX Model
3.3.3. XGBoost Model
3.4. Accuracy of Models and Their Use
4. Analyzing Historical Data and Future Forecast
4.1. Analyzing Historical EV Sales Using the XGBoost Model
4.2. EV Forecast (2025–2035)
4.3. Scenario Forecasts
- Optimistic: Battery prices drop 10% faster than baseline.
- Pessimistic: Policy delayed until 2030, and charger rollout slows (−15% below baseline).
5. Conclusions
Author Contributions
Funding
Data Availability Statement
Conflicts of Interest
References
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(A) | ||||
---|---|---|---|---|
Year | Total EV Market (Unit) | Battery Price (USD/kWh) | GDP Growth (%) | Charger Density Index |
2015 | 26,000 | 230 | 2.2 | 1 |
2016 | 35,500 | 180 | 1.9 | 1.51 |
2017 | 46,300 | 140 | 2.7 | 2.07 |
2018 | 57,000 | 128 | 1.4 | 2.99 |
2019 | 73,000 | 156 | 1.6 | 4.57 |
2020 | 176,000 | 137 | −10.3 | 6.5 |
2021 | 305,000 | 132 | 8.6 | 8.45 |
2022 | 395,000 | 151 | 4.8 | 11.28 |
2023 | 455,000 | 144 | 0.4 | 15.35 |
2024 | 549,000 | 115 | 1.1 | 21.37 |
Year | Target Share (%) |
---|---|
Before 2014 | NA |
2024 | 22% |
2025 | 28% |
2026 | 33% |
2027 | 38% |
2028 | 52% |
2029 | 66% |
2030–2035 | 80% + 4% (per year) |
2035 | 100% |
MAPE (%) | RMSE (k Unit) | R2 | |
---|---|---|---|
Prophet | 17.85 | 21,570 | 0.99 |
SARIMAX | 33.27 | 27,990 | 0.98 |
XGBoost | 0.01 | 10 | 1.00 |
Feature | SARIMAX Coefficient | XGBoost Importance (%) | Prophet Coefficient |
---|---|---|---|
Charger Density Index | +33.54 | 58.96 | –9.34 |
Year (time) | — | 37.65 | — |
GDP Growth (%) | +2.97 | 2.95 | +0.39 |
Battery Price (USD/kWh) | –0.24 | 0.29 | +0.21 |
Policy Dummy | –139.25 | 0.16 | –8.57 |
AR(1) (lagged sales) | +0.17 | — | — |
Residual variance σ2 | 692.18 | — | — |
Rank | Feature | Importance | Key Insight |
---|---|---|---|
1 | Year | 54.50% | The dominant factor acting as a proxy for general growth trends |
2 | Charger Density Index | 41.10% | Strong positive influence |
3 | GDP Growth Percent | 3.40% | Minimal standalone influence, possibly because their effects overlap with time or with each other. |
4 | Battery Price per kWh | 0.80% | |
5 | Policy Dummy | 0.30% |
Feature Pair | Key Insight |
---|---|
Year × Charger_Density_Index | Strong positive interaction—Sales increase sharply in recent years with high charger density. |
Year × GDP_Growth_Percent | Moderate effect—Some boost during high-growth years, but limited overall impact. |
Year × Battery_Price_USD_kWh | Weak pattern—Effect is dominated by the passage of time rather than battery price alone. |
Charger_Density_Index × Battery_Price_USD_kWh | Mild synergy—Higher sales occur when infrastructure expands and battery prices fall, though charger density is the stronger driver. |
Year | Prophet (Unit) | SARIMAX (Unit) | Difference (Unit) | Deviation (%) |
---|---|---|---|---|
2026 | 783,000 | 791,000 | 8000 | 1.0% |
2027 | 902,000 | 934,000 | 33,000 | 3.6% |
2028 | 1,051,000 | 1,099,000 | 48,000 | 4.6% |
2029 | 1,266,000 | 1,288,000 | 22,000 | 1.8% |
2030 | 1,441,000 | 1,506,000 | 65,000 | 4.5% |
2031 | 1,657,000 | 1,756,000 | 99,000 | 6.0% |
2032 | 1,917,000 | 2,043,000 | 126,000 | 6.6% |
2033 | 2,259,000 | 2,373,000 | 113,000 | 5.0% |
2034 | 2,581,000 | 2,752,000 | 171,000 | 6.6% |
2035 | 2,964,000 | 3,188,000 | 224,000 | 7.6% |
Aspect | Prophet | SARIMAX |
---|---|---|
Optimistic Scenario | Growth is fast and smooth; it reaches 3.1 million by 2035. Driven by cheaper batteries. | Reaches ~3.2 million by 2035. Slightly steeper acceleration post-2029. |
Pessimistic Scenario | Growth is moderated, ending at ~2.5 million. Delayed policy and infrastructure have a visible drag. | Reaches ~2.7 million, but maintains steadier growth compared to Prophet. |
Model Comparison | Prophet is more sensitive to input changes (especially in the early years). | SARIMAX is more inertial, but overtakes Prophet by 2035 in both scenarios. |
Difference by 2035 | Prophet optimistic vs. pessimistic: ~444 k units gap | SARIMAX optimistic vs. pessimistic: ~501 k units gap |
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Veysi, S.; Moshfeghi, M.; Sadrfaridpour, A.; Emamy, P. Electric Vehicle Sales Forecast for the UK: Integrating Machine Learning, Time Series Models, and Global Trends. Algorithms 2025, 18, 430. https://doi.org/10.3390/a18070430
Veysi S, Moshfeghi M, Sadrfaridpour A, Emamy P. Electric Vehicle Sales Forecast for the UK: Integrating Machine Learning, Time Series Models, and Global Trends. Algorithms. 2025; 18(7):430. https://doi.org/10.3390/a18070430
Chicago/Turabian StyleVeysi, Shima, Mohammad Moshfeghi, Amir Sadrfaridpour, and Peiman Emamy. 2025. "Electric Vehicle Sales Forecast for the UK: Integrating Machine Learning, Time Series Models, and Global Trends" Algorithms 18, no. 7: 430. https://doi.org/10.3390/a18070430
APA StyleVeysi, S., Moshfeghi, M., Sadrfaridpour, A., & Emamy, P. (2025). Electric Vehicle Sales Forecast for the UK: Integrating Machine Learning, Time Series Models, and Global Trends. Algorithms, 18(7), 430. https://doi.org/10.3390/a18070430