The BVRLA has coordinated a joint letter from over 25 leading fleet operators, rental and leasing companies, and industry bodies, urging the Government to provide targeted support for the UK’s used electric vehicle (EV) market.
Delivered to the Transport, Environmental Audit and Business Select Committees on 3 April, the letter highlights that while the fleet sector is leading the growth of battery electric vehicle (BEV) registrations—driven by the Zero Emission Vehicle (ZEV) Mandate—the lack of support for the used market threatens to derail long-term progress.
With nearly 2 million new vehicles registered annually compared to the 7 million used market, current policies overlook the majority of UK vehicle buyers who rely on the second-hand market. Demand for used BEVs is struggling to keep pace with the expected 178% increase in supply by 2028, putting significant downward pressure on residual values - already down 50% over the past two years, with a further 28% drop forecast by 2030.
This widening gap is creating financial pressure across the automotive supply chain, with signatories warning that it is unsustainable for the industry to continue absorbing the cost. Without intervention, the UK risks losing up to 290,000 new EV registrations over the next two years.
The letter proposes several solutions, including targeted grants, measures to reduce residual value volatility, and standardised battery health information to support consumer confidence.
Speaking at Parliament after 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. A lack of government incentives or affordable public charging infrastructure means that too few used car buyers or dealers are seeing the benefit in going electric. As a result, used BEV supply is outstripping demand and prices are continuing to fall. This depreciation is costing fleets hundreds of millions and being passed on to new buyers in the form of higher motor finance costs.
“To restore confidence in the net zero transition and sustain a healthy electric vehicle ecosystem, the Government needs to intervene.”
The BVRLA will continue working with policymakers and industry partners to advocate for measures that ensure the long-term health of the entire EV ecosystem.
Full details including signatories and a copy of the letter: Industry calls for used market support to secure green transition.
