Electric vehicles (EVs) are crucial for decarbonisation, but like any fairytale, the journey is far from smooth. Our ‘Happy EV After’ ending is at risk. New EVs are costly and lose value far faster than petrol or diesel. Over the last 24 months, used EV values have dropped by more than 50%, an unprecedented decline. Values are expected to fall another 28% by 2030. We face a crisis.
While falling prices might seem appealing, they are unsustainable. Like the Three Little Pigs’ houses, a sustainable EV transition
needs a solid foundation—a healthy used market. Strong used values make new EVs affordable.
By 2027, the collapse of used EV values could result in over 290,000 fewer new EVs sold. The ZEV Mandate ties the new vehicle market to EV volumes, so fewer EV sales will shrink UK automotive, impacting GDP, employment, and carbon targets. Dealers are hesitant to stock used EVs, consumers worry about depreciation, and funders face significant risks. Automotive manufacturers, dealers and funders must invest billions in the transition to net zero while facing enormous losses.
A dark and stormy future looms unless we act fast. We need intervention to boost demand in the used EV market, secure a fairytale ending and achieve our climate goals for future generations.
#happyEVafter is a joint campaign by
