UK Used Car Market Achieves Five-Year High As EVs Secure Record Market Share

Published: Thursday, May 9, 2024, 5:06 [IST]

The UK's used car market has shown a notable increase in the first quarter of 2024, with sales rising by 6.5% to nearly 2 million units. This period marks the fifth consecutive quarter of growth and represents the strongest start to a year since 2019. The boost in sales is largely due to the improved supply in the new car market, which has subsequently enhanced the availability and variety of vehicles in the second-hand market. However, it's important to note that despite this positive trend, transaction numbers are still 2.6% lower than before the pandemic.

One of the standout trends in this period has been the significant rise in battery electric vehicle (BEV) sales, which surged by 71.0%, reaching a record market share of 2.1%. This growth underscores the increasing consumer interest in vehicles that offer both cost savings and environmental benefits. Hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) also saw substantial sales increases, by 49.3% and 42.5% respectively.

Despite the growing popularity of electrified vehicles, petrol and diesel cars continue to dominate the market, accounting for 92.9% of all transactions. However, their market share has seen a slight decline as more consumers opt for electrified options. In terms of vehicle types, superminis led the way, followed closely by lower medium segment and dual-purpose vehicles, together making up 75.8% of all cars sold during this period.

When it comes to color preferences, black remains the top choice for used cars, holding a market share of 21.3%. Grey and blue follow as the second and third most popular colors, with grey experiencing the highest growth among the top 10 colors.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), emphasized the growing demand for electric vehicles in the used car market. He highlighted the need for sustained supply and demand for zero-emission vehicles and called for incentives to encourage EV adoption. Additionally, Hawes stressed the importance of investing in accessible and affordable charging infrastructure to support the UK's transition to net-zero emissions.

The SMMT plays a crucial role in promoting the interests of the UK automotive industry, which is a significant contributor to the national economy with a turnover of £78 billion and adding £16 billion in value. The sector employs over 208,000 individuals in automotive manufacturing and supports numerous other jobs across different sectors. As a key player in advancing global Britain's growth and net-zero emissions goals, the automotive industry's performance is vital.

For further information or inquiries, media contacts at SMMT include Paul Mauerhoff, James Boley, Scott Clarke, Rebecca Gibbs, and Emma Butcher.