EV scrappage rates lower that ICE models
New research from cap hpi has revealed that petrol and diesel vehicles are being written off and scrapped by insurers at double the rate of electric vehicles (EVs).
The data is contrary to the popular perception that EV scrappage rates are greater due to their higher average repair costs.
However, cap hpi analysis found no evidence of this when it examined ICE models against either pure electrics or a combination of electric and hybrid vehicles.
Scrappage
- In the pure electric versus ICE category, the data revealed that for scrapped vehicles aged one year and under, a total of 40 EVs (0.01%) were scrapped out of the 334,525 on the road compared with 701 of 2,026,146 ICE vehicles (0.03%).
- At three years and under, 782 (0.09%) of 912,341 EVs were scrapped compared with 10,300 (0.18%) of 5,788,617 petrol and diesel vehicles.
- Five years and under, 1,433 (0.13%) of 1,130,581 EVs were scrapped against 33,700 (0.33%) of 10,278,745 ICE vehicles.
- In the electric and hybrid against ICE scenario, electrics and hybrids, 203 EVs (0.02%) aged one year and under were scrapped out of 960,902 compared with 544 of 1,406,637 ICE vehicles (0.04%).
- At three years and under, 2,356 (0.10%) of 2,389,352 EVs were scrapped compared with 8,726 (0.20%) of 4,311,606 ICE vehicles, while at five years and under, 4,635 (0.15%) of 3,057,881 EVs were scrapped against 30,528 (0.37%) of 8,351,445 ICE vehicles.
Jonathan Clay, cap hpi identification director, said:
“It’s essential that the industry has an accurate picture of emerging trends as the EV market continues to develop. With repair costs for EVs running up to 29% higher than ICE vehicles, according to a Solera study, it’s important to understand the impact on scrappage rates.”
