The electric vehicle (EV) market may see a large number of cheap electric vehicles entering the market, but not new cars but used cars.
This is good news for consumers, but it has mixed effects for electric vehicle manufacturers . While the influx of used cars could hurt new electric vehicle sales, it could also attract consumers who are hesitant about electric vehicles.
According to the latest electric vehicle report from consumer market research firm JD Power, the large number of electric vehicles returned after their leases expire in the US will create a large supply for the used electric vehicle market.
The number of electric vehicles returned after leases end in 2026 will increase by a whopping 230%, or about 215,000 electric vehicles, said Elizabeth Krear, vice president of electric vehicles at JD Power.
J.D. Power predicts that thousands of EVs that consumers don’t want to buy back at the end of their leases will be returned to used-car dealers. The company says that the number of EV returns will be around 18,900 in 2021, but that number will reach 65,600 by the end of 2024 and jump to 215,000 by 2026.
While the 215,000 EVs in 2026 would only account for about 5.3% of all lease returns in the US, it would be much higher than the forecast of just 1.5% for 2024 and 2025.
More supply means better prices for consumers. The latest data shows that EV prices are falling on the used car market. According to the Manheim used car value index, gasoline-powered car prices fell 3.5% in October, while EV prices fell 11.1%.
Global electric vehicle sales up 35% in October
Data from market research firm Rho Motion recently showed that global electric vehicle sales in October reached 1.72 million units, up a sharp 35% year-on-year. China remained the leading market in terms of electric vehicle sales growth, with a 54% increase.
According to experts, the country’s electric vehicle market is showing no signs of slowing down and is entering the final two months of the year with strong sales. North America also saw a significant increase of 11.4%.
Meanwhile, the European market recorded its second consecutive month of slight growth, and is forecast to end 2024 on a positive note, as carmakers seek to boost sales to meet carbon emission reduction targets set by the European Union for next year.