Used car market growth to be driven by EVs
The UK used car market is projected to rise from 7.4 million transactions in 2024 to just under 7.9 million by 2027, according to Cox Automotive.
According to its Insight Quarterly, used car transactions next year will increase by just 0.3% to 7,458,356. Growth will remain modest for a further two years as the electrification of the market stifles both production and demand.
Cox Automotive insight director Philip Nothard said: “Demand for used vehicles remains stable, but the UK car parc is contracting, and overall vehicle registrations and transactions continue to fall short of peak levels seen from 2002-2008 and 2014-2019. Our forecast highlights the enduring appeal of used vehicles but also emphasises the reality that this sector, like much of the broader automotive market, faces ongoing pressures as consumer priorities shift and the vehicle landscape continues to adapt.”
He said the used car market is being heavily influenced by increasing numbers of new energy vehicles along with changing production strategies from vehicle manufacturers. The forecast predicts significant growth in electric vehicle sales within the used car market, with EV transactions increasing their share of the market from 21% this year to 34% by 2027.
Nothard said:
“The affordability and appeal of used cars will play a central role in the UK’s transition to an electrified future. The market is evolving, but the sector’s resilience is clear. Those in the sector who proactively adjust to shifting consumer preferences and stock needs will be well-positioned to thrive in a transformative market. But it certainly won’t be plain sailing ahead.”
