UK's Used Car Sales Surge As Electric Vehicles Gain Ground

Published: Thursday, August 8, 2024, 14:36 [IST]

The UK’s used car market has experienced a 7.2% growth in the second quarter of 2024, marking the sixth consecutive quarter of expansion. According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), this increase translates to an additional 131,128 sales compared to the same period in 2023.

Battery electric vehicles (BEVs) have seen a significant rise in popularity, with 46,773 units sold between April and June. This represents a 52.6% increase, achieving a record market share of 2.4%, up from 1.7% last year. Plug-in hybrids (PHEVs) and hybrids (HEVs) also saw growth, with sales rising by 25.2% and 43.6%, respectively.

Petrol cars remain the most popular fuel type, with sales increasing by 9.2%. Diesel vehicles, however, saw a slight decline of -1.2%. Despite these changes, petrol and diesel cars still dominate the market, accounting for 92.4% of all used vehicle transactions.

Superminis continue to be the best-selling used vehicle type, with an 8.6% increase in volumes, making up 31.9% of transactions. Lower medium vehicles follow with a 27.1% share, and dual-purpose vehicles hold a 15.8% share. Together, these three categories account for three-quarters of all used vehicle sales.

The executive and luxury saloon segments were the only ones to see declines in volume, falling by -4.2% and -5.4%, respectively.

Colour Preferences Remain Consistent

Black remains the most popular colour for used cars, growing by 6.3% and representing over one in five transactions at 21.2%. Grey and blue follow closely with market shares of 17.5% and 16.3%, respectively. White has moved into fourth place, pushing silver to fifth.

Cream/ivory continues to be the least popular colour choice, with just 1,194 units sold.

SMMT's Perspective on Market Growth

Mike Hawes, SMMT Chief Executive, commented on the market's performance: "It’s encouraging to see the used car market continue its recovery, with choice and affordability rejuvenated by the new car sector’s sustained run of growth." He emphasised that increasing electric vehicle supply is crucial for helping more motorists transition to greener options.

The first half of the year saw transactions rise by 6.8%, totalling 3,931,318 units – marking the best growth since 2016 and the strongest first half since 2019.

About SMMT

The Society of Motor Manufacturers and Traders (SMMT) is a key trade association in the UK automotive industry. It supports industry interests domestically and internationally while promoting policies related to levelling up, net zero emissions, global trade advancements, and economic growth plans.

The UK automotive sector contributes significantly to the economy with £78 billion turnover and £16 billion value added annually. The industry invests around £3 billion each year in research and development.

Employment Impact

The automotive industry employs over 208,000 people directly in manufacturing roles and approximately 800,000 across related sectors such as advertising, finance, and logistics.

This sector also supports jobs outside London and Southeast England with wages about 14% higher than the national average.

The UK exports automotive products worth £94 billion annually which accounts for about 10% of all UK goods exports.

The conclusion highlights that maintaining momentum requires reliable EV charging infrastructure nationwide along with incentives to support widespread adoption of electric vehicles across Britain.