Europe’s used EV demand is electrifying as supply shortages restrict sales
Electric Vehicles (EVs) were Europe’s fastest selling used cars for the second month in a row according to the latest INDICATA Market Watch insights report.
Europe’s three fastest-selling used cars were all EVs in June in the shape of the Tesla Model Y, Tesla Model 3, and Polestar 2.
In a normal market this would be good news, however, dealers and traders are struggling to meet this demand due to low new EV sales in previous years and a shortage of de-fleeted EVs hitting the market as many lease contracts remain extended.
European used car sales fall in 2022
European used car sales were 10.1% lower in the first six months of 2022 when compared with the same period in 2021 blighted by constraints in new car supply. Only Denmark and France have bucked the trend on sales reporting a year-on-year increase of 6.5% and 7.4% rise respectively.
Prices continued to rise across Europe in all but the UK, where prices fell by -2.6%, the sixth successive monthly fall. Austrian prices rose the most in June by 11.6%, closely followed by Belgium of 10.4% and Portugal at 9.5%.
Sales impacted by lack of used stock
Whilst increased used car prices are supporting profit margins a lack of the right quality stock is heavily impacting sales volumes. Stock levels going into July fell a further 2.8% compared with the start of June making it four consecutive month-on-month declines. This puts stock levels 6.5% lower than at the start of July 2021. Excluding Turkey total stock levels for the rest of Europe were 8.3% lower year-on-year.
Andy Shields, INDICATA’s global business unit director said: “The demand for EVs continues to exceed supply which in turn is helping keep prices high. The Europe-wide acceptance of used EVs has reached a tipping point in the past two months and looks set to continue as more retail customers move away from ICE cars.
“There is no sign of new car supply challenges improving until 2024 so we believe the used car market will remain healthy for the next few years,” he added.