Used EV sales boost can't halt overall market decline in Q2

UK used electric vehicle sales increased by 57.1% in Q2 this year, but it wasn't enough to stop an 18.8% drop in the market overall.

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), battery electric vehicle (BEV) sales rose to reach 16,782 units, doubling market share to 1.0%, while plug-in hybrids held relatively stable with 1.0% growth and 0.9% of the market. 

Hybrids (HEVs), meanwhile, declined by -4.0% with 2.4% of the market. As a result, used petrol and diesel vehicles remained dominant, totalling 1,682,280 units and accounting for 95.6% of sales.

The total used car market in Q2 saw 1,759,684 cars changing hands, which equates to 407,820 fewer transactions over the same period last year.

However, the SMMT has clarified that the scale of the decline was artificially inflated by comparison with 2021 when the easing of Covid restrictions saw the busiest second quarter since records began. By comparison, Q2 2022 was -13.5% behind pre-pandemic 2019.

The ongoing shortage of semiconductors continued to impact new car market supply, with an inevitable knock-on effect on used transactions.

Declines were recorded in each month, with falls in April, May and June of -16.8%, -20.9% and -18.6% respectively. As a result, the market is down -8.3% year to date on 2021, and -12.8% on pre-pandemic 2019.

Reflecting the new car market, the most popular segment types were supermini (31.4%), lower medium (26.5%) and dual purpose (14.7%).

The Ford Fiesta, Vauxhall Corsa and Volkswagen Golf dominated the top three sales positions, followed closely by the Ford Focus in fourth place.

Black cars proved the most popular, accounting for more than one in five (21.5%) sales, followed by blue and grey. Pink cars proved the least popular overall, comprising 1,135 units.

Used EV appetite is growing

Mike Hawes, SMMT chief executive, said: “It was inevitable that the squeeze on new car supply would filter through to the used market.

“Despite this, Britain’s used car buyers clearly have a growing appetite for the latest low and zero emission cars, and we need a thriving new car market to feed it.

“The next Prime Minister must create the conditions to drive consumer confidence, especially in EVs, to drive the fleet renewal necessary to meet our decarbonisation goals.”

Chris Knight, KPMG UK automotive partner, said the statistics have been driven by consumers holding onto their cars for longer, resulting in fewer used car transactions.

He said: “Prices remain significantly higher than pre-pandemic as consumers are willing to pay a premium to avoid having to wait for a vehicle.

“There is however evidence that price growth is cooling amidst a cost of living squeeze, and a rise in the cost of driving. 

“Consumer demand for used cars may well drop in the coming months, but the supply landscape is such that it’s unlikely that we see major price corrections in the near term.”