Sales of sub-two-year-old EVs recorded their highest ever market share of 11.2% in February.
According to Indicata UK’s latest Market Watch, this figure was assisted by a 24.9% monthly rise in sub-one-year old cars entering the market as manufacturers invested in tactical incentive campaigns to drive sales of nearly new EVs.
Despite EVs having the worst Market Days’ Supply of any fuel type at 55 days, the UK balance between EV supply and demand is still one of the best in Europe. In February and March prices also continued to stabilise reducing by just 0.4 percentage points.
It said the big test is likely to be the high volumes of used EVs set to come back into the market from the March 24-plate change which could put pressure on stock levels and prices according to Indicata UK’s head of sales Dean Merritt.
“Each month our used EV data looks more encouraging as used prices start to fall more into line with used ICE cars.
“Our February report shows manufacturer marketing tactics are working and helping drive demand for younger used EVs. The big test will be manufacturers balancing their marketing spend between new and used EV sales,” he added.
Currently the Market Days’ Supply (MDS) figure of 55 days indicates that used EV supply currently exceeds demand, but if manufacturers continue to fall behind their 22% low emission new car registration target, then incentives will be introduced to increase sales. MDS is derived from dividing the currently available supply of inventory by the average daily retail sales rate over the past 45 days.
“Incentives will drive down new car prices which should translate into lower used prices. This could make used EV prices lower than ICE cars for the first time which will further stimulate the market,” said Merritt.
