In advance of next week's Spending Review, the BVRLA has written to the Chancellor to highlight the urgent need for targeted support for the used battery electric vehicle (BEV) market.
Awareness of used BEV challenges is growing, highlighted in recent meetings with Future of Roads Minister, Lilian Greenwood, and national press coverage.
In the letter, the BVRLA stresses that a weakening used BEV market poses a significant risk to the UK’s net zero targets, economic growth, and the broader transition to electric vehicles.
The letter outlines the stark reality: used BEVs are depreciating much faster than petrol and diesel vehicles, with values dropping by over 50% in two years. This undermines leasing and financing models and threatens the affordability and accessibility of new BEVs.
Given the close interdependence between the new and used markets, the BVRLA is calling for a package of time-limited, targeted interventions - including grants or tax relief for used BEV purchases, and measures to stabilise residual values. The association has shared detailed proposals with Treasury officials, including a joint paper with the Green Finance Institute outlining a potential Market Stabilisation Scheme.
The message is clear, without a stable and functioning used BEV market, the UK’s road transport decarbonisation transition could falter. The Spending Review is seen as a key moment to restore confidence and ensure the transition delivers equitable economic and environmental benefits.
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