From ICE to EV: The Future of Electric Vehicles in Ireland and Beyond

The global shift toward electric vehicles (EVs) is no longer a future concept—it's happening now, reshaping the transport and energy sectors at an unprecedented pace.

Driven by UN climate goals, rapid technological innovation, and supportive policies, EVs are becoming more accessible and attractive for both individuals and businesses. In Ireland and the UK, this momentum is clearly visible, with government initiatives, infrastructure investment, and incentives aligning to encourage mass adoption.

In this article, we briefly examine the current landscape of electric vehicle adoption—in Ireland, the UK, and globally—and look ahead to the opportunities and challenges that will define the next decade of road transport.

To explore the future of EVs hands-on, we also invite you to watch the recording of our webinar with Eamonn McSweeney, Managing Director of eStation, where we explored the practicalities of EV adoption and infrastructure planning in more detail.

Electric Vehicles: Current Landscape and Future Outlook 

The shift toward EVs is accelerating, driven by environmental concerns, technological advancements, reduced costs and supportive policies. Ireland is actively speeding up in this transition, implementing measures to promote EV adoption and infrastructure development. 

Global Trends in EV Adoption 

The IEA continue to forecast growth in EV sales, with units increasing by 4 million from 2023 to 2024. China leads the way in EV and battery production, offering efficient electric vehicles which are cheaper than their fossil fuel-run equivalents. It is estimated that two-thirds of car sales could be electric by 2035, highlighting the rapid ascent in EV adoption worldwide.  

Ireland's Strategic Push Towards Electrification 

Ireland is making strides in promoting EV adoption through policy measures and infrastructure investments. The 2025 budget includes a one-year extension of the €10,000 relief on the Original Market Value on certain categories, complementing the existing €35,000 EV relief. The carbon tax will increase in October 2025, affecting petrol and diesel vehicles. Additionally, a new “benefit-in-kind” vehicle registration tax rate for low-emission vehicles provides further financial incentive to opt for an EV purchase.  

As EV adoption rises, the development of charging infrastructure becomes crucial. Home charging remains the most common method for electric car owners, offering convenience and cost savings. In Ireland, companies like eStation are facilitating this expansion by providing a range of EV charging solutions for residential, commercial, and public sectors. Their efforts aim to make the transition to electric mobility intuitive, accessible, and reliable.  

The UK’s Electrification Challenge: Shifting Incentives and Taxation

While the UK has led many aspects of Europe’s EV transition, its approach is now entering a more complex phase. One of the most significant upcoming challenges is the introduction of Vehicle Excise Duty (VED) on electric cars, vans and motorcycles from April 2025. Until now, EVs benefited from a full exemption, but under new rules, electric vehicles will begin paying road tax, including the expensive car supplement for vehicles over £40,000.

This shift signals the government’s intent to treat EVs on par with internal combustion engine vehicles from a tax perspective — a move seen by many as a disincentive at a time when mass adoption is still fragile. It may especially affect cost-conscious consumers and fleet managers, who had previously relied on these exemptions to justify the upfront cost of EVs.

Additionally, the Benefit-in-Kind (BiK) rate for electric company cars have remained favourable at 2% until April 2025, however there’s now uncertainty about how these rates will evolve—which could impact corporate decisions on fleet electrification.

At the same time, support schemes such as the EV Chargepoint Grant and the Workplace Charging Scheme continue to offer funding for infrastructure — but are increasingly seen as modest compared to the financial supports previously available under the Plug-in Car Grant, which ended in 2022.

As the UK’s Zero Emission Vehicle (ZEV) mandate ramps up—requiring 22% of new car sales to be zero-emission in 2024, rising to 80% by 2030—these changing incentives highlight a tension: how to balance long-term fiscal policy with the need to maintain momentum in EV adoption.

Challenges and the Road Ahead 

The main obstacle to EV sales is affordability. In Ireland, EV’s can be €10,000-20,000 more expensive than similar petrol vehicles. The EU’s tariff on Chinese BEV imports have driven up the price of their cheaper EVs. An additional challenge is the great need for EV infrastructure expansion. Charging infrastructure demand will increase six-fold by 2035 to support widespread EV adoption.  

Technological advancements are addressing some of these issues. For instance, Chinese companies like BYD, Zeekr and CATL can develop batteries capable of charging to 80% in just over 10 minutes, potentially revolutionising the EV market.  

The transition to electric vehicles is well underway and Ireland and the UK are making significant strides through supportive policies and infrastructure development. While challenges persist, it is clear we are moving in the right direction. Continued support from technological innovations and policy will drive further growth in EV adoption.