The UK used car market is facing a shortage of electric vehicles (EV) after demand accelerated sharply this spring, according to Indicata.
The latest Market Watch report found used EV demand has now begun to exceed supply, with zero emission models selling faster in the UK than in any other European market tracked by the business.
Indicata said the rise in demand intensified after conflict in the Middle East pushed internal combustion engine (ICE) fuel prices higher, accelerating consumer interest in used EVs.
EVs accounted for 11.1% of all used car sales in early May, making them the UK’s third best-selling powertrain behind petrol at 43.3% and diesel at 22.4%.
Plug-in hybrids and mild hybrids ranked fourth and fifth respectively.
Stock warning if demand is sustained
The strongest indication of tightening supply came from Indicata’s Market Days’ Supply (MDS) data, which fell to a record low of 29 days in May from 41 days in April.
The figure means the UK has just 29 days of used EV stock remaining if sales continue at their current pace.
Indicata said this was the second consecutive month the UK had recorded the lowest used EV supply levels among the 16 European countries included in its Market Watch report.
MDS is calculated by dividing current stock levels by the average daily retail sales rate over the previous 45 days. Lower scores indicate stronger demand and faster stock turnover.
Neil Frost, managing director of Autorola UK, parent company of Indicata, said the pace of change in the used EV market had accelerated significantly.
He said: “The speed at which the demand for used EVs has changed is incredible.
“Even before the Middle Eastern conflict we had started to see a gradual rise in popularity for used EVs, but the recent huge increase in ICE fuel prices has sent demand through the roof.”
Indicata’s report also showed EVs dominating the list of fastest-selling used models in the UK.
Used EV prices expected to climb in response
The Volvo C40 was the fastest-selling used car overall, followed by the BMW iX3 and Cupra Born, meaning the top three quickest-selling used vehicles were all electric.
Despite the rapid rise in demand, used EV prices have yet to increase significantly.
Frost said pricing pressure could still emerge if supply constraints continue.
He added: “Amazingly used EV prices haven’t yet responded, but if demand continues at this level, we expect to see prices start to climb.”
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