The United Kingdom’s used car market exhibited a notable upswing of 4.1% during the second quarter of the current year, as per the latest data shared by the Society of Motor Manufacturers and Traders (SMMT). This rise translates to a substantial surge of 72,583 transactions compared to the corresponding period in 2022. The growth is a reflection of the sustained expansion in the new car market and notable improvements in supply availability.
The prevailing momentum, contributed by the mitigation of supply chain disruptions, has driven monthly sales growth throughout the ongoing year. While the second quarter market remains 9.9% below the 2019 figures, the ongoing recovery is evident.
The domain of used battery electric vehicles (EVs) experienced remarkable progress during the second quarter, recording an impressive growth of 81.8%, which translates to 30,645 units. This surge signifies 1.7% of the market, setting a new record and marking a distinct advancement from the 1.0% market share of the preceding year. Additionally, double-digit growth was observed in both plug-in hybrids and hybrids, showing increases of 11.4% and 29.5%, resulting in 18,437 units and 53,634 units sold respectively. Consequently, the burgeoning share of electrified vehicles led to a marginal decline in the market share of conventionally powered vehicles, shifting from 95.7% to 94.3% over the past year. This shift occurred despite the growth of 2.5% and 2.8% in petrol and diesel car sales respectively.
The bolstering of the second-hand car market stands as a vital component in enhancing the accessibility and affordability of electric vehicles. This is particularly significant as electric vehicles generally bear a higher price tag than their internal combustion engine counterparts. However, in the past year, second-hand EV prices have witnessed a decline, with data firm Cap hpi estimating a noteworthy 35% decrease.
The electric vehicle market has undergone rapid expansion in recent years, with a staggering 260,000 new electric cars registered in the previous year. Notably, the surge continued in 2023, with deliveries skyrocketing by 87.9% in July, leading to the registration of one battery electric car every 60 seconds.
Among used vehicle types, superminis retained their position as the top-selling category, accounting for 31.5% of total transactions. The segment grew by 4.4%, reaching 576,980 units. The lower medium category followed closely, making up 26.5% of the market, while dual-purpose cars secured the third spot with a 15.1% share.
In terms of colour preference, black upheld its status as the most favoured choice for the tenth consecutive quarter, representing a significant share of 21.3% of transactions. Grey and blue followed suit, securing the second and third positions with market shares of 16.9% and 16.3% respectively.
Mike Hawes, Chief Executive of SMMT, expressed his satisfaction at witnessing a rejuvenated new car sector that is driving demand for used vehicles, particularly facilitating the adoption of electric vehicles. The potential to meet the growing appetite for pre-owned EVs, he highlighted, is intricately tied to sustaining a buoyant new car market and ensuring the availability of reliable and accessible charging infrastructure, powered by environmentally friendly energy solutions. This, in turn, would enable a wider demographic to embrace emission-free driving at a cost point tailored to their preferences, thereby expediting the achievement of environmental objectives.
