In the second quarter, battery electric car transactions rose 67%, the strongest growth since Q1 2024, according to figures by the Society of Motor Manufacturers and Traders (SMMT).
Demand rose particularly sharply in April and May – up 110.9% and 57.6% respectively compared with 37.8% in June – coinciding with fuel price rises linked to the Middle East conflict and set against a relatively weak performance last year when VED changes came into effect.
Between April and June, more than one in 18 buyers (5.5%) made the switch, up from around one in 30 (3.3%) a year ago.
The UK’s used car market returned to growth overall in the period, up 0.7% as 2,009,318 vehicles. Petrol vehicles fell 1.2% and diesel fell by 7.2%, although 86.7% of buyers chose internal combustion engines in the quarter.
Superminis remained Britain’s best-selling used car type, accounting for 31.7% of demand, with volumes rising 0.2%. The lower medium segment followed, with a 26.6% market share and a 0.2% increase. Dual purpose cars recorded the strongest growth, up 7.4% to secure 17.7% of overall sales.
Mike Hawes, SMMT Chief Executive, said:
“A return to growth is good news for motorists and the wider automotive sector, with sales of used EVs rising particularly strongly as more choice reaches more buyers.
“As the used market is where most people buy their cars, plentiful and affordable supply is vital, however, increasingly unrealistic targets in the new car market risk constraining that supply and pushing up costs. Urgent regulatory reform is needed to deliver a transition that works for every driver.”
The news comes as car dealers have said the fuel price shock caused by the Iran War is the number one reason for the current surge in used electric car sales, according to August’s Startline Used Car Tracker.
Paul Burgess, CEO at Startline Motor Finance, said:
“Almost universally, we’re seeing data and hearing conversations suggesting the used EV market has turned a corner, and thought it would be useful to get a dealer perspective on why this is happening.
“Overwhelmingly, the majority of motor retailers backed the top three answers in our survey – the fuel shock, higher levels of choice that have emerged as volumes of electric car stock have increased, and competitive pricing.
“It seems dealers believe used car buyers are attracted by the low purchase price and running costs of EVs and can now more easily find a car that meets their needs. It’s a happy convergence of a range of factors.”
James Hosking, Managing Director of AA Cars, said:
“We are seeing a clear shift in consumer behaviour, with demand for used electric vehicles continuing to accelerate.
“With fuel prices remaining unpredictable and the cost of living putting pressure on household budgets, motorists are becoming much more conscious of running costs when choosing their next vehicle.
“Price still remains one of the biggest factors for anyone buying a car. A year ago, many drivers may have looked at electric cars and decided they were simply too expensive. That picture is changing.
“Our latest Used Car Index shows prices for the UK’s most searched-for used EVs have fallen by 10% in the past 12 months, and models such as the Nissan Leaf, Renault Zoe and Hyundai Ioniq are now within reach of far more buyers.
“As lower prices combine with reduced running costs, more buyers are feeling confident about making the switch.
“In the second half of 2026, we should continue to see the used car market hold up.
“A stronger new car market over the past 18–24 months is now feeding through to the used sector, increasing availability and giving buyers more choice, especially as drivers become increasingly focused on value for money and running costs.
“Buyers and sellers alike should expect to see more room for haggling, as the supply of second-hand vehicles increases.”
Susan Wells, Director of EV & Solar at Hive, said:
“A thriving used EV market is crucial to accelerating sustainable transport. We’re seeing strong growth this year, which signals genuine consumer confidence in EVs across all market segments and that they are successfully transitioning from early adopter territory into mainstream acceptance.
“However, this growth is dependent on having the right people in place. The government must prioritise investment in EV-related skills and training to support this growing sector. From technicians who can service electric vehicles to sales professionals who understand the technology, we need a workforce equipped for the electric future to sustain this momentum.
“Alongside this, we need investment in the expansion of public charging networks. Together, these are essential to ensure that accessible electric transport becomes a reality for all drivers, regardless of budget or location.”
Image courtesy of Green Car Guide
