- Auto Trader reports the UK’s used car market is growing, with a 5% rise in transactions and a 9% increase in website visits.
- Electric vehicles will constitute about 4% of cars by the end of 2024, rising to over a third by 2033.
- Brands like MG and Tesla see substantial growth in sub-five-year-old EVs, reflecting the market’s shift towards sustainability.
Auto Trader reports that the used car market is growing, with an increase in EVs on the roads
We’ve heard about the new car production stalling slightly, but Auto Trader reports that the used car market is growing in strength. In their latest market report, the online marketplace showed a 5% increase in used car transactions across 2024 so far. That amounts to around 7.6 million sales. That’s coupled with a 9% year-on-year increase in overall website visits to Auto Trader. From that, we can assume that buyers are looking for more cost-effective options on the second-hand market. Some analysts have suggested that many would-be EV adopters are buying cheaper, second-hand ICE vehicles to tide them over until they feel enough confidence to embrace the EV sector.
How do electric vehicles fare in the report?
The report states that by the end of 2024, EVs will make up about 4% of cars on the road. This figure will rise to over a third by 2033. By 2028, around 33% of all under-five-year-old used cars will be electric, up from 15% at the end of 2024. That significant rise is a sure sign of the widespread production pivot to emobility.
New electric-focused brands, and legacy automakers with an eye on the future, are dramatically increasing EV production. These manufacturers are securing supply chains, finalising designs, and adapting facilities to bolster EV output. What’s more, this is a venture into the relative unknown for many brands, which calls for redesigned pricing and marketing strategies.
However, the report shows promise. Brands that have already committed to emobility, such as MG and the EV pioneer, Tesla, are showing wins. Both of these automakers will see seven times more sub-five-year-old cars on the road by the end of the year compared to 2019. While the multiple EV award-winner, Kia, will see a 9% increase. These increases show that as the brands turn to zero-emission vehicles, their presence on the roads grows. That signifies the disruption of the EV sector on the automotive market, and demonstrates that sustainability brings business wins.
Marc Palmer, Head of Strategy & Insights, commented:
“2024 has had its challenges, but overall, it’s performed well, and based on the current trajectory our outlook for the rest of the year remains positive. However, the heavily nuanced market retailers have had to manage over the last few years is only set to intensify, as the combination of supply constraints, more electric cars, and a changing brand landscape mean the parc will soon look very different. With such a dramatic change in forecourt dynamics, sourcing, pricing and selling cars are going to require a blend of both instincts and insights to navigate the market ahead.”
Auto Trader is helping retailers keep on top as the market evolves. As such, it has prepared an interactive analysis on the future of the automotive industry to help you stay on top – https://www.autotraderinsight-blog.co.uk/car-parc
