A coalition representing the UK’s entire automotive ecosystem is calling on the government to take urgent action to support the used battery electric vehicle market.
While the UK has committed to decarbonising road transport, the group warns that without targeted support for the used BEV sector, the transition to zero-emission vehicles is at risk.
Representatives from more than 30 companies delivered the open letter to the Secretary of State for Transport, Heidi Alexander MP, highlighting how the Government can best direct the £1.4 billion committed last month to ‘support continued uptake of electric vehicles, including vans and HGVs’.
The letter highlights that the £1.4 billion presents a significant opportunity but stresses that a substantial portion should be directed specifically at the used BEV market, this market being key to making EVs affordable, accessible, and viable for a broader range of households and small businesses.
The group urges the introduction of financial support measures such as grants or subsidies for used BEVs, alongside investment in skills, public awareness, and battery health standards to build consumer confidence.
They emphasise the strong link between new and used vehicle markets: low used BEV values negatively affect financing and leasing models, which in turn harms the entire EV ecosystem. Used BEVs have experienced steep depreciation, losing value nearly 60% more than petrol vehicles since late 2022, creating market instability.
The letter warns that continued price volatility could derail further adoption and infrastructure investment, and calls for urgent government intervention to stabilise the market.
Delivering the letter, BVRLA Chief Executive, Toby Poston said: ‘The used car market is nearly four times the size of the new one. Maintaining healthy demand and values for second-hand electric vehicles is essential if we want to deliver a sustained transition.
‘The link between the new and used markets is critical. Low residual values increase the cost of financing and leasing new vehicles. This impacts all customers, especially consumers and SMEs, suppressing demand and eroding confidence across the BEV ecosystem.
‘We know the Government is listening. The £1.4bn committed to support EV uptake last month could make a difference. This letter is just one example of how we continue to work with industry and government to highlight how this money can achieve the best return on investment.’
The letter was signed by:
- BVRLA
- Association of British Insurers (ABI), General Insurance Policy Team
- Association of Fleet Professionals (AFP)
- Autotrader UK
- Electric Vehicles UK
- Electric Vehicle Association (EVA) England
- Institute of the Motor Industry (IMI)
- National Association of Motor Auctions (NAMA)
- National Franchised Dealers Association (NFDA)
- REA
- Shoreham Vehicle Auctions
- Vehicle Remarketing Association (VRA)
- Alphabet
- Arnold Clark Finance Ltd
- Arval UK
- Ayvens UK
- Cox Automotive Europe
- Kinto UK Ltd
- Leasys
- Select Lease by Mobilize
- Novuna Vehicle Solutions
- Motability Operations
- Pendragon Vehicle Management
- United Rental Group (URG)
- Zenith
- BYD UK
- MG Motor UK
- Polestar
- VW Financial Services
- AXA UK & Ireland
- MJ Quinn
- Sanctuary Housing
- Speedy Hire
Photo: Hyundai Motor Group
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