Second-hand electric cars close to “tipping point”: comment

"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. [2] Recent data showed that second hand EV sales rose strongly in 2024 [3], in part because many used electric cars are now at price parity with their petrol and diesel equivalents. [4] 

“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 2.7million fewer EVs on our roads by 2035. That would mean 2.7million households missing out on savings enjoyed by EV drivers and stuck driving dirtier and more expensive petrols and diesels for longer.” 

Analysis by the ECIU found that by 2048 a weakening of the ZEV mandate could result in sales similar to the ‘lower option’ considered by the previous Government when designing the policy, resulting in 2.7m fewer EVs entering the second hand market than would otherwise have been the case by 2048. This means that a total of around £40bn in extra motoring costs would have to be shouldered by millions of families across the UK, including some of the poorest. [5]

A recent report by CBI Economics, commissioned by the ECIU, revealed that a failure by the car industry to make the transition to manufacturing EVs could see its contributions to the UK economy fall by as much as 73%, or £34.1bn, and over 400,000 jobs could be lost. Conversely, economic output could increase by over £16bn, and 167,000 new jobs could be created, if a rapid and successful transition takes place. Government support is critical in avoiding such an outcome, and this includes the provision of a stable and supportive regulatory environment through keeping measures like the ZEV Mandate in place. [6]