08-07-2025
UK road to net zero undermined by used EV market slump
Progress on the UK's journey toward zero-emission transport is facing major setbacks, according to the British Vehicle Rental and Leasing Association (BVRLA).
While the number of public chargepoints and availability of new electric vehicles (EVs) continue to grow, spiralling public charging costs and plummeting used EV values are 'offsetting that positivity,' the association warned in its 2025 Road to Zero Report.
BVRLA Chief Executive Toby Poston described the current phase of the transition as 'its most challenging period,' noting that while corporate demand for electric cars remains strong and salary sacrifice schemes are 'democratising access' to EVs, the used market is facing a crisis.
'Used EV values are falling relentlessly,' said Poston, adding that this collapse is 'destroying value on an epic scale' and 'costing fleets hundreds of millions of pounds.' He called the impact a 'death by a thousand cuts' that is steadily eroding industry confidence.
The report, produced in collaboration with Ricardo, was launched during the BVRLA's Fleets in Charge conference, where Minister for the Future of Roads, Lilian Greenwood MP, acknowledged both the opportunity and the challenge facing the sector. Ricardo plc is a global strategic, environmental, and engineering consultancy based in the UK.
'Transport is the engine of our economy,' Greenwood said. 'The transition to zero emissions brings huge opportunities to futureproof our automotive and logistics sectors.' She welcomed the report and committed to working with industry to deliver a 'greener and more prosperous future.'
The Road to Zero assessment outlines progress across three key pillars: vehicle supply, demand, and infrastructure. While 12 electric models priced under £25,000 are now available – a promising development – that figure still trails the 26 comparable petrol or diesel vehicles in the same price range. Meanwhile, the UK's used EV market has seen a 46% drop in average values from 2021 to 2024, more than double the 19% drop seen in internal combustion engine vehicles.
The report also highlights a 'significant unseen barrier' to EV adoption: destination charging. Locations such as hotels and leisure venues are still under-equipped with chargepoints, hindering wider EV uptake.
Despite the headwinds, there are bright spots. The BVRLA points to targeted incentives that are continuing to support EV adoption, especially through personal and business leasing. However, progress is slower in sectors without equivalent support, such as rental and van operations, with rental sector EV utilisation actually declining year-on-year.
Public charging remains a critical concern, though the number of installed chargepoints continues to rise along the 'exponential curve' needed to hit the government's 2030 target of 300,000. Through its Bon VoyCharge campaign, the BVRLA is stressing the need for a charging network that's not just expansive, but strategically aligned with real-world use cases.
Poston said the government's recent £1.8 billion commitment to support EV uptake 'could make a difference,' and pledged that the BVRLA will continue to work with policymakers to ensure the funding delivers the 'best return on investment.'
"UK road to net zero undermined by used EV market slump" was originally created and published by Motor Finance Online, a GlobalData owned brand.
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