The car industry is warning that Britain’s used EV boom could destroy what your electric car is worth
Key Points
- Used EV sales rose 67% to 110,761 units in Q2 2026, a record 5.5% share of the UK used car market.
- The overall used market grew 0.7% to 2,009,318 transactions, the first Q2 above two million since 2021.
- Petrol and diesel still accounted for 86.7% of used sales.
- The SMMT says discounted new EVs entering the used market damage residual values, and puts real consumer demand at 10% to 13% against a 33% mandate.
- The government's ZEV mandate consultation runs until 23 October 2026, with 2030 car targets of 50% to 80% on the table.
Used electric cars took a record 5.5% share of Britain’s second-hand market in the second quarter, and the Society of Motor Manufacturers and Traders (SMMT) says the discounting behind that supply now threatens what those cars are worth.
Battery electric transactions rose 67% to 110,761 units between April and June, the strongest quarterly growth since the first quarter of 2024. Demand climbed 110.9% in April and 57.6% in May, against 37.8% in June, coinciding with fuel price rises linked to the Middle East conflict and measured against a weak comparison with last year, when vehicle excise duty changes took effect.
More than one in 18 buyers chose electric, up from around one in 30 a year earlier. Hybrids rose 31.2% to 130,825 units and 6.5% of the market, from 5.0%, while plug-in hybrids fell 6.8% to 22,856.
The wider used market grew 0.7% to 2,009,318 transactions, the first second quarter above two million units since 2021 and 1.2% below pre-pandemic levels. Petrol remained the most popular fuel type despite falling 1.2% to 1,121,243, while diesel dropped 7.2% to 620,045, reflecting shorter supply feeding through from the new car market.
Conventionally fuelled cars still accounted for 86.7% of everything sold in the quarter. Half-year transactions reached 4,025,550, up 0.2%.
What the SMMT is warning about
The Society of Motor Manufacturers and Traders argues the zero emission vehicle mandate compels manufacturers to hit a share of sales rather than a volume, and that volume and margin determine whether carmakers can fund the next round of models.
Repeated surveys by Auto Trader, Deloitte and others put underlying consumer demand for new electric cars at roughly 10% to 13%, against a mandated 33% this year, 38% next year and 52% in 2028. The trade body says that gap diverts billions of pounds into discounts today, weakening the industry’s capacity to invest tomorrow.
Discounted new electric cars eventually reach the second-hand market as three-year-old stock, and the SMMT says that pipeline erodes residual values, creates instability and undermines buyer confidence.
“We need EV choice that is accessible and affordable for everyone, so supply must be delivered at a sustainable pace that doesn’t undermine the total cost of new EV ownership,” said Mike Hawes, Chief Executive of the SMMT.
The organisation said its argument concerns how road transport decarbonisation happens rather than when, and it wants the review concluded quickly to give manufacturers clarity on 2027.
Consultation now underway
The government launched its ZEV mandate review consultation on 14 August, and it closes on 23 October.
Options for the 2030 car target range from 50% to 80% with extended flexibilities, with van options running from 40% to 70%, while the requirement for all new cars and vans to be zero emission by 2035 remains unchanged.
Transport secretary Heidi Alexander said the end goal has not changed and that targets should stay practical.
Octopus Electric Vehicles chief executive Gurjeet Grewal opposes any relaxation, arguing the mandate gives manufacturers confidence to invest and drivers confidence to switch, and citing Carbon Brief estimates that weaker targets could cost consumers £3 billion a year in petrol by 2030.
EVA England Chief Executive Vicky Edmonds said the government should examine why demand has lagged rather than lower the mandate’s ambition.
