Surging Demand for Used EVs in the UK

Welcome, Net Zero News readers,

In an encouraging development for the UK automotive sector, the used car market has witnessed a significant growth of 5.5% in 2024, as per the latest report from the Society of Motor Manufacturers and Traders (SMMT). This upward trend is particularly notable for battery-electric vehicles (BEVs), which have reached record figures in the used car market.

The demand for used BEVs has surged remarkably, climbing by an impressive 57.4% to a record-breaking 188,382 units sold. This achievement has propelled their market share to an all-time high of 2.5%, a significant increase from 1.7% in 2023 and an astonishing 13-fold rise since 2019. This growth trajectory is not only a testament to the rising popularity of electric vehicles but also reflects a broader shift in consumer preferences towards more sustainable transport options.

In the final quarter of 2024, the share of BEVs remained robust at 2.7%, mirroring the performance observed in the previous quarter. Additionally, the market for plug-in hybrids (PHEVs) and hybrids (HEVs) also flourished, with sales of PHEVs increasing by nearly a third (32.2%) to reach 92,120 units, while HEVs saw an even more impressive rise of 39.3%, totalling 306,114 units sold. This collective growth underscores a growing consumer inclination towards electrified vehicles as viable alternatives to traditional petrol and diesel cars.

When combining the figures for all electrified vehicles, the total number of used models changing hands rose by a remarkable 43.3% compared to 2023. This surge translates to over half a million ultra-low or zero-emission vehicles making up a notable 7.7% of all used car sales. Such figures indicate a significant shift in the market dynamics, aligning closely with the new car sector and showcasing the expanding demand and diversity available to consumers in both new and used electric vehicles, catering to various budget levels.

2024 has marked a remarkable eight consecutive quarters of growth for the used car market, with 400,488 more vehicles exchanged compared to the previous year. This growth has been fuelled in part by the new car market, which has enhanced the availability and variety of vehicles within the used sector. The trend of increasing transactions has been consistent, with every month in 2024 experiencing growth similar to that of 2023. In the fourth quarter alone, transactions rose by 4.0%, culminating in a total of 1,746,051 used cars sold.

Mike Hawes, the Chief Executive of SMMT, remarked on these developments, stating, “The used car sector’s 25-month growth streak is good news for fleet renewal and for consumers benefitting from the greater choice filtering through from the new market. Record sales of second-hand EVs also demonstrate a strong appetite for these cutting-edge cars at lower price points.” He further emphasised that to sustain this growth, it is crucial to maintain affordability alongside supply. He called for meaningful fiscal incentives to stimulate consumer demand for new EVs and to reconsider the Vehicle Excise Duty (VED), which currently poses a financial disincentive that could hinder the affordability of used EVs for years to come.

This growth in the used car market, particularly for electric vehicles, is a promising indicator of the UK’s transition towards a more sustainable automotive landscape. As consumers increasingly opt for greener alternatives, the automotive industry must adapt, ensuring that both new and used electric vehicles are accessible to all, thereby contributing to the overarching goal of achieving net-zero emissions.

The impressive statistics and trends from the used car market serve as a reminder of the shifting tides in consumer behaviour and the increasing acceptance of electric vehicles. With each passing year, it becomes clearer that the future of transportation is electric, and this shift is not just limited to new car buyers but is rapidly extending into the used car market as well.

As we move forward, it will be vital for policymakers, manufacturers, and consumers alike to continue fostering an environment that encourages the adoption of electric vehicles. This includes not only incentives for new purchases but also strategies to enhance the availability and affordability of used electric vehicles. By working collaboratively, we can ensure that the transition to a net-zero future is not only achievable but sustainable, benefiting both the economy and the environment.

In conclusion, the growth of the used car market, especially in the realm of electric vehicles, is a clear indication that we are on the right track towards a greener future. As we celebrate these achievements, let us remain committed to overcoming the challenges that lie ahead, ensuring that the drive towards net-zero emissions is accessible to everyone.

Thank you for your continued support in championing the cause of net-zero emissions.