Record Market Share for Second-Hand Electric Cars as Used Market Continues to Grow
Second-hand electric car sales have experienced a significant boost in the third quarter of 2023, resulting in a record market share for these vehicles. This growth comes as the overall used car market continues to expand for the third consecutive quarter.
Rise in Electric Car Market Share
From July to September, the market share of electric cars in the used car market increased from 1.0% to 1.8% compared to the previous year. This growth was accompanied by a 99.9% increase in total sales volumes, reaching 34,021 units. The Society of Motor Manufacturers and Traders (SMMT) attributes this record market share to an increase in supply, aided by an easing of the semiconductor shortage. The improved supply has not only boosted sales of new electric cars but has also fed into the second-hand market.
Growth in the Used Car Market
The used car market as a whole experienced a 5.5% growth during the third quarter, with 51,893 more transactions compared to the previous quarter. This brought the total number of used car transactions to 1,884,160, the highest figure since the pandemic began.
Pricing Trends for Second-Hand Electric Cars
Leading up to August, there was a decline in prices for second-hand electric cars, with values falling by an average of 44%. However, in September, prices for less expensive models such as the Renault Zoe and BMW i3 appeared to stabilize, with only a 1% decrease. On the other hand, prices for more expensive models like the Mercedes EQC and Kia EV6 continued to decline in October, with drops of 5.9% and 5.1% respectively.
Industry Insights
Mike Hawes, CEO of SMMT, commented on the growth in the used car market, particularly in the electric car segment. He emphasized the importance of maintaining this momentum by fostering growth in the new car market to support the supply of used cars. Additionally, Hawes highlighted the urgent need for an expanded charging infrastructure to instill confidence in electric car owners.
Other Used Car Sales Trends
In addition to the surge in second-hand electric car sales, used petrol and diesel car sales also experienced growth, with increases of 4.0% and 2.3% respectively. Plug-in hybrid used sales saw a significant rise of 34.6%, while hybrid sales increased by 46.4%. The third quarter also witnessed a rise in the sale of used superminis, with the Ford Fiesta remaining the best-selling second-hand car in the UK. Crossovers and ‘dual-purpose’ vans and SUVs emerged as the next most popular category, accounting for 14.9% of the market. However, sports and luxury saloons experienced declines of 1.8% and 2.5% respectively.