Used-BEV Sales Rise But U.K. Incentive Cuts Risk Future Sales, SMMT SaysUsed-BEV Sales Rise But U.K. Incentive Cuts Risk Future Sales, SMMT Says

As demand for new battery-electric vehicles continues to wane across Europe, the U.K. sees some growth in consumer demand for electrified powertrains in the used-car market.

Latest data from the Society of Motor Manufacturers and Traders (SMMT) for the year 2024 shows used-car dealership sales rose 5.5% to 7,643,180 marking two years of continuous growth.

Even consumer demand for used BEVs rises 57.4% year-on-year to a record 188,382 units and achieving a new high for market share, at 2.5%.

Sales of hybrids rose 39.3% to 306,114 units while plug-in hybrids grew 32.2% to 92,120.

However, SMMT warns that the BEV growth will be challenged by the government’s ending of the Vehicle Excise Duty and Expensive Car Supplement tax breaks for BEVs that will drastically increase ownership costs during the first six years of a vehicle’s use and, therefore, ultimately impact the used market.

Meanwhile, gasoline and diesel-powered cars accounted for 92.1% of all used-car transactions, down slightly from 94.3% last year. Gasoline remains dominant, up 6.8% to represent 57.1% of the market accounting for 4,367,009 vehicles, while diesel transactions dropped 2.4%, accounting for 35.0% of all transactions at 2,674,725.

Top-selling used models for 2024 were the Ford Fiesta compact hatchback, Vauxhall’s equivalent Corsa as runner-up and the midsize hatchback Volkswagen Golf (Rabbit) in third.

While dealers can take some positive indicators from the data, Chris Knight, vice-president automotive at business consultancy Data UK&I, says the figures could be seen as “papering over the cracks” in terms of future sales.

He adds: “New EV sales growth is slowing, which will filter down to the used market. The upcoming changes to Vehicle Excise Duty to include EVs, with an additional Expensive Car tax for models over £40,000 ($49,796), will undoubtably slow uptake even further.

“U.K. EV sales overall are far below government targets and we lag other markets with stronger incentives in place for EV drivers. The government needs to do more to encourage people to switch.”