Motoring boss calls for fresh EV incentives as used electric sales surge
Nearly two million used cars changed hands in the most recent quarter including record numbers of electric vehicles, according to new figures.
But the head of the largest motor trade organisation in the country has called on the Government to take a fresh look at its support for electric vehicle transition as figures released by the organisation this month showed the new car market had shrunk by around 6% in October despite a surge in battery electric vehicle(BEV) sales.
The call from Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), comes after the figures revealed that while market share for new BEVs had increased to 18.1 per cent, it was still lagging behind an industry target of 22%.
However there was better news for the used car market, which saw its seventh successive quarter of year-on-year growth after a 4.3% rise in sales between July and September.
A total of 1,965,811 vehicles changed hands, with 81,651 additional transactions compared with the same period last year following growth in the new car market.
Included in the total were a record 53,423 used battery electric vehicles, a jump of 57.0%, reflecting the largest-ever market share at 2.7%. Sales of plug-in hybrids and hybrids also rose, up 29.0% and 35.8% respectively. Meanwhile, 1,123,387 petrol (up 5.7%) and 679,797 diesel vehicles (down -3.9%) found new owners, together accounting for 91.7% of the market.
From January to September, used car transactions have risen in every month and with just one quarter to go until the year end, the market is up 6.0% on the same period in 2023, with almost six million (5,897,129) units sold in the first nine months.
Mike Hawes, SMMT Chief Exec said a "significant intervention" was required to shift the new car market at the required pace, and called for an urgent review of the market’s performance and the regulatory mechanisms driving the transition from petrol and diesel cars.
"Growth in the used car sector is good news and driven by an outstanding range of desirable and, increasingly, zero emission vehicles to suit every budget. Maintaining this depends on a healthy new car market, particularly for EVs," said Mike Hawes, SMMT Chief Executive.
"Giving consumers the confidence to switch from their familiar petrol or diesel vehicles requires confidence and incentives otherwise many would-be new car buyers will sit on their hands, leading to a diminishing market that will inevitably limit used car availability and affordability.
"This will be to the cost of motorists, the economy and the environment – making a review of support for the transition and the regulation intended to deliver it, an urgent priority."
