“Call me a dinosaur […] but I just really like the sound of a V8”. With vocal petrolheads like Jeremy Clarkson publicly shunning electric vehicles, and some manufacturers applying for an exemption from the forthcoming ban on internal combustion engines, you could be forgiven for thinking that the supercar industry would be the last to adopt sustainable fuel sources.

But the tide is turning – and it’s not just because the Government is standing firm on its demand that, by 2030, all new cars will be electric. EV supercar momentum is growing, with giants like Porsche and Ferrari now firmly on board, and high-value EVs fast gaining the status and prestige needed to attract High Net Worth Individuals.

So, what’s driving supercar owners to embrace EVs? And how can the insurance market cater for the EVolving industry? ERS has long provided specialist insurance for motors and drivers that require enhanced or complex cover, and we’re here to support our brokers’ business needs as the market EVolves.

A market characterised by rapid innovation

It’s a perfect storm for EV supercars - consumer demand is pushing the market to develop its offering and innovation in the sector is leading HNW individuals to make purchases. And, in a break from the norm from the supercar industry, which has been dominated by a number of long-standing industry goliaths, new entrants into the market are making considerable waves. Young entrepreneurs and engineers like Mate Rimac aren’t afraid to think big and produce exciting new vehicles – and they’re inspiring buyers and manufacturers alike who all want a slice of the pie.

When it comes to the specific features of new EV supercars which are drawing buyers in, speed and acceleration – perhaps unsurprisingly – top the list. Indeed, the Rimac Nevera and Tesla Model S Plaid – both fully electric – sit at the top of the ‘fastest car’ list. Scarcity is also appealing - as proven by US start-up Draco, which is only making 25 of its super-desirable Draco GCT, with a million-pound price point and the promise of a track-only version for the very brave.

Ultimately, supercars are renowned as works of art and supreme engineering – and the newest cars in production boast both in abundance. The Aspark Owl, from Japan, for example, is being heralded for its classic car ‘swoopy’ design, in the midst of an industry renowned for more angular, futuristic, vehicles. And Rolls Royce getting in on the EV act adds yet another level of prestige.

For many, though, being environmentally friendly is in itself a selling point. It’s perhaps a less sexy reason for buying, but certainly one which is driving the market forward. And, for business owners it could make financial sense, as well as being a positive move for the environment. If you buy an electric vehicle (even a supercar) to be used as a company car, you’ll enjoy 1% tax through Benefit in Kind. The Benefit in Kind rate for higher emissions vehicles is currently more than 30%, so an EV could deliver significant savings. EV owners are also exempt from fuel benefit charge, fuel duty, and road tax.

And it’s not only tax breaks which may appeal to business owners – they can use their disposable income to boost their personal ESG credentials, and that of their organisation – and lead from the front when it comes to the race to net zero.

Considering the barriers to adoption

From the weight of batteries to a lack of charging points, there are still several critical blockers to the adoption of EV supercars. But the good news is that they’re fast being overcome thanks to significant innovation in the field.

For example, in a survey carried out by SBD Automotive, a lack of EV charging infrastructure was identified as a major concern by nearly half of consumers. This is likely to be even more of a concern for Supercar drivers when driving at high speeds and naturally impacting the battery life - Tesla even has a ‘Ludacris’ mode that increases peak torque by about 60%, further exacerbating battery consumption. It’s also apparent when comparing the fuel efficiency of a Tesla Model 3 which returns an impressive 132 MPGe to a Porsche Taycan Turbo S with 70 MPGe. But the situation is quickly EVolving, with energy distributors like National Grid Energy Distribution (NGED) promising to install an additional 600,000 charging points, including in residential areas, over the next three years. A multi-million-pound project from National Highways is also designed to support EV drivers across the UKs motorway network – seeing rapid chargers installed where the grid supply is not sufficient.

So, it’s good news on the charging front, and in relation to weight there’s positive progress here too. Magnesium and composites are being used in construction as lighter alternatives to steel, and there are promising developments in the arena of battery weight too. Earlier this year, Daimler bought Oxford-based start-up YASA, which has developed an "axial flux" high-performance electric motor that weighs 23 kg (50.7 lb), a fraction of a near-300 kg V12 engine in a Ferrari and is about the size and shape of a steering wheel. It’s impressive stuff and as well as tackling the weight issue, it’s also helping EV supercars cool down – mitigating current electric motors’ propensity to overheat.

A world after EVs?

So, now that battery-electric technology has reached new heights in the automotive world, manufacturers are putting together some thrilling performance cars. But with hydrogen making waves as an alternative fuel source, could buyers bypass EVs altogether?

A prototype of the first hydrogen supercar – The Hyperion XP-1 – was released as early as 2020, the culmination of cutting-edge technology and brightest brains in the business. Excitingly, it promises1,000 miles to a tank of hydrogen.

The upsides of using hydrogen are plentiful – it’s even greener, lighter than battery powered cars – and has the potential to be cheaper in the long run as the tech evolves.

But there is some way to go before hydrogen is a viable alternative. The storage of hydrogen, costs and safety issues all mean that hydrogen powered supercars as a viable alternative to ICE or EVs not imminent.

We’re here to help you and your clients make the shift to EV

At ERS, our team has long-been providing Lloyd’s A+ rated underwriting services for supercars and even hypercars Using our specialist market knowledge and expert underwriters, we’re able to provide custom-built insurance for this emerging EV and alternative fuel market.