Second-hand electric vehicles approaching popularity tipping point, ECIU analysis finds
The Energy & Climate Intelligence Unit (ECIU) warned that the expansion of the second-hand EV market is dependent on supply, with Government policies playing a key role in ensuring availability.
New analysis suggests that second-hand electric vehicles (EVs) in the UK may be approaching a tipping point where they become more popular than petrol and diesel models.
The second-hand car market accounts for 80% of total car sales, and recent data indicates strong growth in used EV sales throughout 2024. Many second-hand EVs are now at price parity with their petrol and diesel counterparts, making them an increasingly attractive option for buyers.
A report by the Energy & Climate Intelligence Unit (ECIU) warned that the expansion of the second-hand EV market is dependent on supply, with Government policies playing a key role in ensuring availability.
The ECIU analysis found that weakening the Zero Emission Vehicle (ZEV) mandate could result in 2.7 million fewer EVs on UK roads by 2035, limiting the supply of used electric cars. This shortfall could leave millions of households unable to benefit from the cost savings associated with EV ownership, as current EV drivers save an estimated £1,600 per year compared to petrol car owners.
Further projections suggested that by 2048, the reduction in ZEV targets could lead to second-hand EV sales following the ‘lower option’ scenario previously considered by the UK Government. This would result in 2.7 million fewer EVs entering the used market, leading to an estimated £40 billion in additional motoring costs for families, including some of the most financially vulnerable.
In addition to consumer costs, the economic impact of failing to transition to EV production could be severe. A report by CBI Economics, commissioned by the ECIU, estimated that a failure to shift towards manufacturing EVs could lead to a 73% decline in the automotive sector’s contribution to the UK economy, equating to a £34.1bn loss.
More than 400,000 jobs could be at risk. However, a successful transition could create over 167,000 new jobs and increase economic output by £16 billion. Government support, including maintaining a stable regulatory environment with policies like the ZEV Mandate, is seen as vital to achieving this positive outcome.
Dr Simon Cran-McGreehin, head of analysis at the ECIU, said: “It’s clear why EVs are becoming more popular in the second-hand market, where 80% of car sales take place, with savings available to drivers of £1,600 a year compared to their petrol counterparts. Recent data showed that second-hand EV sales rose strongly in 2024, in part because many used electric cars are now at price parity with their petrol and diesel equivalents.
“But the growth of the second-hand EV market is dependent on supply, which is why the Government’s ZEV mandate has such an important role to play in ensuring that everyone is able to make the move to EVs.
“The more new EVs that are sold today, the quicker the second-hand market will grow; rumours that the Government is considering weakening ZEV targets could result in 2.7 million fewer EVs on our roads by 2035. That would mean 2.7 million households missing out on savings enjoyed by EV drivers and stuck driving dirtier and more expensive petrols and diesels for longer.”