Sales of younger EVs record highest ever February market share

Sales of EVs sub-two-years-old have recorded a market share of 11.2%, their highest ever in February according to an INDICATA UK market report.

A 24% monthly increase in EVs sub-one-years-old entering the market contributed to this success following investment in incentive campaigns.

Dean Merritt, INDICATA UK’s head of sales, said: “Each month our used EV data looks more encouraging as used prices start to fall more into line with used ICE cars.

“Our February report shows manufacturer marketing tactics are working and helping drive demand for younger used EVs. The big test will be manufacturers balancing their marketing spend between new and used EV sales.

“Incentives will drive down new car prices which should translate into lower used prices. This could make used EV prices lower than ICE cars for the first time which will further stimulate the market.”

At the start of the year, dealers expressed concern regarding the pace of EV sales compared with the pace of sales of ICE vehicles and the extent of pace variation across EV age cohorts.

However, a stabilisation of pricing would accelerate EV sales.  In February and March prices have stabilised so far, reducing by 0.4 percentage points.

Although the balance between EV supply and demand is strong in the UK, with a current Market Days Supply figure of 55 days, the March plate change may pressurise stock levels and prices.

Manufacturers have been warned to keep up with the 22% low emission new car registration target.