Driven by factors such as price decreases, increased model selection, and policy support, the UK used electric vehicle market experienced significant growth in 2024. Here is a detailed analysis:
1. Sales Growth and Market Share
- Record Annual Sales: In 2024, UK used electric vehicle sales reached 188,382 units, a substantial year-on-year increase of 57.4%. This growth boosted the market share of used electric vehicles from 1.8% in 2023 to 2.5%.
- Strong Quarterly Performance: Third-quarter sales reached 53,400 units, a 57% increase year-on-year, with market share further climbing to 2.7%. First-quarter sales also grew by 71%, reaching 41,505 units.
2. The Key Role of Price Factors
- Price Parity with Petrol Cars: Used electric vehicle prices fell significantly due to increased new car supply and early models entering the market. For instance, prices of popular models like the Tesla Model 3 and Kia e-Niro are now close to traditional fuel vehicle levels, with some models even priced below comparable petrol cars. The Energy and Climate Intelligence Unit highlighted that the price decrease directly fueled the surge in demand.
- Shifting Consumer Trends: Tightening household budgets led more consumers to choose affordably priced nearly-new electric vehicles instead of brand new ones.
3. Model Selection and Market Supply
- Increased Model Diversity: As the new car market electrifies at a faster pace, a wider range of brands and models, including plug-in hybrids from brands like Volvo and BYD, are entering the used market. For example, nearly one-fifth of new car sales in the UK in 2024 were electric vehicles, further boosting supply in the used market.
- Influx of Leased Vehicles: Three to five-year-old leased electric vehicles reaching the end of their terms are becoming a significant source for the used market.
4. Policy and Industry Promotion
- ZEV Mandate Stimulating New Car Sales: The UK government requires automakers to increase electric vehicle sales year by year, indirectly expanding the supply in the used market. For instance, pure electric vehicles accounted for 25.3% of new car registrations in 2024.
- Industry Calls for Continued Support: Mike Hawes, Chief Executive of the SMMT, emphasized the need to maintain growth through financial incentives (such as reducing car tax) and investment in charging infrastructure.
5. Consumer Awareness and Demand
- Economic and Environmental Advantages: Consumers are increasingly recognizing the low maintenance costs and environmental benefits of electric vehicles. Demand has been particularly concentrated after prices have fallen. 80% of vehicle transactions occur in the used market, and its growth is crucial for household savings (around £1,600 annually).
Challenges and Future Outlook
Despite strong growth, the industry still faces risks such as insufficient charging networks and potential tax policy adjustments. Furthermore, the continued growth of the used market relies on the healthy supply from the new car market; a slowdown in new car demand could impact the future availability of used electric vehicles.
In conclusion, the surge in the UK used electric vehicle market is a result of the combined effect of price, supply, policy, and other factors, reflecting consumers’ positive response to the electrification transition. However, it also requires continuous coordinated support from policy and industry.
♯ What is the specific data and reasons for the price decrease of used electric vehicles in the UK in 2024?
The specific data and reasons for the price decrease of used electric vehicles in the UK in 2024 are as follows:
- Specific Data:
- According to data from the SMMT (Society of Motor Manufacturers and Traders), used electric vehicle sales in the UK reached 188,382 units in 2024, a year-on-year increase of 57.4%, accounting for 2.5% of the total used car market.
- In terms of price, the prices of some popular used electric vehicles fell significantly. For example, the prices of the Tesla Model 3 and Kia e-Niro are close to petrol cars, making these models more attractive in the used market.
- Data shows that the prices of BEV (Battery Electric Vehicle) SUV models decreased by 13%, while the prices of BEV Saloon models decreased by 15%.
- Reasons for Price Decrease:
- Increased Supply: As leases and corporate contracts expired, a large number of used electric vehicles entered the market, leading to oversupply. For example, the price of a used Tesla Model 3 fell significantly from its peak to about £16,000.
- New Model Price Competition: The prices of new models launched by manufacturers are lower, further compressing the perceived value of used electric vehicles. For example, the price reduction for high-end models like the Porsche Taycan was up to £40,000.
- Impact of Energy Costs: High electricity prices have eroded some of the traditional cost advantages of electric vehicles, reducing some consumers’ interest in buying used electric vehicles.
- Policy Push: The UK government’s ZEV (Zero Emission Vehicle) mandate requires manufacturers to produce more affordable electric vehicles to meet market demand. This has prompted manufacturers to lower new car prices, thereby indirectly affecting the price level in the used market.
- Changes in Market Demand: Although the growth in demand for used electric vehicles was significant, changes in overall market dynamics led to price decreases. For example, SUV and Saloon models experienced larger price reductions.
- Market Impact:
- The price decrease has made used electric vehicles more attractive, especially for families with limited budgets, where many consumers choose nearly new cars instead of brand new ones.
- Black became the preferred color for used electric vehicles, and superminis were the most popular.
- Despite the price decrease, used electric vehicle sales continued to grow strongly, indicating sustained increasing consumer demand for electric vehicles.
The main reasons for the decrease in used electric vehicle prices in the UK in 2024 were the combined effects of increased supply, new model price competition, rising energy costs, and policy push.
♯ What are the specific financial incentive measures by the UK government for the used electric vehicle market?
The specific financial incentive measures by the UK government for the used electric vehicle market are limited, and policy support has weakened in recent years. Here is a detailed analysis:
- Changes in Subsidy Policy: The UK government previously provided subsidies for purchasing electric vehicles, but these subsidy policies have been gradually cancelled or adjusted. For example, the government cancelled the subsidy policy for new electric vehicles and only retained the “Company Car Tax Benefit” (ZEV) incentive measure for corporate users. This policy will continue beyond 2027 but does not involve financial support for private purchases of used electric vehicles.
- Impact of Tax Policy: From April 2024, the UK implemented a new Vehicle Excise Duty (VED) reform, which imposes a fixed tax of £10 on electric vehicles in the first year and a standard tax rate of £195 per year from the second year onwards. In addition, high-end electric vehicles are also subject to an additional “luxury car tax.” This tax policy may increase the cost of owning used electric vehicles, thereby curbing market demand.
- Challenges for Used Electric Vehicle Market Growth: Although the used electric vehicle market has shown strong growth in recent years, the government has not taken targeted financial incentive measures to support this market. For example, Mike Hawes, Chief Executive of the SMMT, called on the government to reconsider current incentive measures and abolish costly car tax disincentives to stimulate consumer demand for used electric vehicles.
- Policy Recommendations and Future Direction: Government experts recommend accelerating the sale of used electric vehicles and promoting low-carbon travel by providing upfront price discounts on used electric vehicle purchases (such as fee rebates). In addition, the government is advised to expand capital allowances to reduce the operating costs of leased electric vehicles, thereby promoting green economic transformation.
- Support for Charging Infrastructure: The government has invested some funds in charging infrastructure. For example, the 2024 budget allocated £200 million to expand on-street charging facilities. However, these measures primarily target the new car market, not the used electric vehicle market.
- Market Supply and Demand and Consumer Confidence: The growth of the used electric vehicle market is constrained by factors such as price, battery life, and charging costs. Although consumer demand for used electric vehicles is high, the lack of sufficient financial incentive measures may limit further market development.
The UK government’s financial incentive measures for the used electric vehicle market are limited, mainly focusing on company cars, with insufficient support for private purchases of used electric vehicles.
♯ Which models were most popular and had the highest sales in the UK used electric vehicle market in 2024?
In the UK used electric vehicle market in 2024, the models with the highest sales were mainly concentrated among popular models with significant price reductions and vehicle types preferred by consumers. A specific analysis is as follows:
- Tesla Model 3 and Kia e-Niro: These two models received widespread attention due to price reductions and became one of the most popular models in the used electric vehicle market. The price of the Tesla Model 3 was close to petrol cars, making it more attractive, while the Kia e-Niro was also favored for its competitive price and performance.
- Small Cars and Superminis: According to SMMT data, small cars, compact cars, and multi-purpose vehicles were the highest-selling models, accounting for 75.3% of total transactions. This indicates that consumers prefer these types of vehicles, especially more affordable small cars and superminis in the used market.
- Plug-in Hybrid (PHEV) and Hybrid Electric Vehicle (HEV) Models: Sales of these models in the used market increased by 32.2% and 35.8% respectively, showing an increase in consumer acceptance of new energy vehicles.
- Black Models: Black was the preferred color for used car buyers, accounting for 75.3% of all transactions. This may be related to the prevalence of black vehicles and their ease of matching with other interior colors.
- Other Popular Models: According to the CARS website, the Honda E was popular for its infotainment system and interior design, making it one of the most attractive models on the market. In addition, traditional fuel vehicle brands such as BMW 3 Series and Ford Focus also performed well in the used market.
In the UK used electric vehicle market in 2024, the Tesla Model 3, Kia e-Niro, small cars, and superminis were the most popular models.
♯ What is the current state of the UK charging infrastructure and its impact on the growth of the used electric vehicle market?
There is a close relationship between the UK’s charging infrastructure and the used electric vehicle market, which has had a significant impact on the growth of the used electric vehicle market.
From the perspective of charging infrastructure, the UK currently has over 72,000 public charging points and plans to add 100,000 charging points in the coming years to cope with increasing demand. However, although the charging infrastructure is expanding, its distribution is still insufficient, especially in rural areas and for households without private parking, which remains an urgent problem to be solved. In addition, the government announced an investment of £200 million in the 2024 budget to expand on-street charging facilities, indicating that the government is working to improve the charging network.
The improvement of charging infrastructure has a multifaceted impact on the used electric vehicle market. First, with the expansion of charging facilities, consumer confidence in electric vehicles increases, which helps promote the growth of the used electric vehicle market. For example, the price competitiveness of used electric vehicles is further enhanced due to lower charging costs, making them more affordable for more consumers. Second, the improvement of charging infrastructure also reduces potential buyers’ concerns about the range and charging convenience of electric vehicles, thereby promoting the sales of used electric vehicles.
On the other hand, the growth of the used electric vehicle market in turn puts higher demands on charging infrastructure. As more and more consumers choose to buy used electric vehicles, the demand for charging facilities is also increasing. Therefore, the government and relevant agencies need to continue to invest in the construction and optimization of charging infrastructure to meet market demand.
The growth of the UK used electric vehicle market also benefits from other factors, such as the decrease in electric vehicle prices, the diversification of model choices, and consumers’ preference for environmentally friendly modes of transportation. These factors have jointly driven the prosperity of the used electric vehicle market. However, despite the strong market performance, the insufficiency of charging infrastructure is still a potential bottleneck that needs to be addressed through continuous investment and policy support.
The UK’s charging infrastructure is gradually improving, which has played a positive role in promoting the growth of the used electric vehicle market. However, the uneven distribution and insufficient number of charging facilities are still issues that need attention.
♯ What is the growth trend forecast for the UK used electric vehicle market in the coming years?
The growth trend forecast for the UK used electric vehicle market in the coming years can be summarized as follows:
- Continued Sales Growth:
- According to multiple pieces of evidence, the UK used electric vehicle market has shown a significant growth trend in recent years. In 2024, used electric vehicle sales reached 188,382 units, a year-on-year increase of 57.4%, accounting for 2.5% of total used car sales. Used electric vehicle sales are expected to grow further to 250,000 units by 2025. This growth is mainly due to falling prices and expanding model choices. For example, the prices of popular models such as the Tesla Model 3 and Kia e-Niro are close to petrol cars, attracting more consumers.
- Gradual Increase in Market Share: The market share of used electric vehicles is steadily increasing. In the third quarter of 2024, its market share reached a record high of 2.7%. Although the current market share is still low, as the penetration rate of electric vehicles increases and consumer demand for environmentally friendly vehicles grows, the market share is expected to continue to expand.
- Price Factor is a Key Driver: Price decrease is one of the main factors driving the growth in used electric vehicle sales. The prices of many electric vehicles are already close to or below those of traditional fuel vehicles, making them more acceptable to consumers. In addition, government support policies for electric vehicles and technological advancements have further promoted the growth of the used electric vehicle market.
- Market Potential and Challenges: Although the market is growing rapidly, the UK used electric vehicle market still faces some challenges. For example, the current supply of used electric vehicles is limited, especially the supply of vehicles with new car ages is insufficient. In addition, diesel vehicles still account for a higher proportion among older vehicles, which may affect the sustainability of the overall market.
- Future Outlook: The UK used electric vehicle market is expected to continue to maintain a strong growth momentum in the coming years. With more consumers switching to electric vehicles, and the push from policy support and technological advancements, sales and market share of used electric vehicles are expected to further increase. However, to achieve long-term growth, issues such as insufficient supply and market competition still need to be addressed.
The UK used electric vehicle market will continue to grow rapidly in the coming years and become an important part of the used car market.
