The impact of the war in Iran on the price of petrol and diesel is driving a rise in demand for used electric vehicles (EVs) in the UK.
Figures from Indicata’s latest Market Watch report show that used EV sales rose to a record 9.8% of all used cars sold in April, up from 7.4% in March.
Stock levels, meanwhile, have reduced from 10% to 9.1% as drivers turn to electric to combat petrol and diesel price hikes.
On April 30, figures from the RAC show diesel was priced, on average, at 188.53 pence per litre – an increase of 46.2p since the conflict began. Unleaded was 156.98ppl – 24.2p higher.
Indicata’s data reveals the market days’ supply (MDS) of EVs in the UK has also fallen to a record low of 41 days. This figure is the lowest in the 16 European countries where Indicata publishes its Market Watch report.
It means electric cars are the second fastest-selling powertrain behind petrol cars which have an MDS of 39 days.
The MDS of EVs was 85 days in January, which shows how quickly market sentiment towards used EVs has changed in just a few months.
MDS is derived from dividing the current supply of inventory by the average daily retail sales rate over the past 45 days. A lower number signifies high demand and quick sales.
Dean Merritt, Indicata UK’s national retail strategy manager, said: “We are seeing a clear acceleration in used BEV sales, combined with a contraction in stock levels which is improving market fluidity. This adjustment has not yet translated into an increase in prices.”
“It puts the used EV market in a good place as consumer and wholesale demand is growing at a time when more EVs are being de-fleeted by leasing and salary sacrifice companies,” added Merritt.
