Used BEV numbers set to grow at least tenfold by 2027

The  Society of Motor Manufacturers & Traders (SMMT)’s Q3 report on used cars led with the heading, “Pre-loved EVs soar to record levels as the used car market goes green.” This reflected the growth of Battery Electric Vehicle (BEV) sales by 57% in a market up 4.3%. That said, and accepting that it was a record market share for used BEVs, they still only accounted for 2.7% of the total used car market.

Looking at other ‘fuel’ options, plug-in hybrids and hybrids rose 29.0% and 35.8%, respectively, while petrol sales improved by 5.7%; on the other hand, diesel sales fell 3.9%.

While forecasting that BEV sales will increase tenfold in the next three years may seem like a leap, the rationale is very simple. In October, new BEV sales accounted for a market share of just under 21%, and typically, these will join the used car retailing parc in three years.

Add to this number the existing parc of used BEVs and those currently in their first–owner new –three age range, and the trajectory should mean that one in four used cars sold in the UK in Q3 2027 will be a BEV comfortably and will, in all likelihood, gain an even greater market share.

In the immediate future, hybrid cars will increase their market share alongside BEVs, mainly at the expense of diesel cars. However, in light of the Autumn Budget changes to Benefit in Kind (BIK) taxation, which will see hybrid drivers’ BIK rates increase to align with petrol and diesel car rates, we should expect new hybrid sales to be increasingly replaced by new car buyers opting to buy a BEV.