1. Reluctance in Purchasing Used EVs
Driver hesitation in buying used electric vehicles (EVs) creates a hurdle affecting both the second-hand and new car markets.
2. Market Dynamics and Price War
Falling prices in the $1.2 trillion second-hand EV market outpace combustion-engine cars due to factors like subsidy absence, technology anticipation, and charging infrastructure gaps. Intense competition, sparked by Tesla and Chinese models, triggers a price war, impacting new and used car values.
3. Automakers and Dealers Facing Challenges
Plummeting second-hand EV values impact automakers and dealers financing leases, leading to increased borrowing costs. This has repercussions on European markets that were at the forefront of transitioning away from fossil fuel-powered propulsion.
4. Addressing 2024 Challenges and Future Trends
Around 1.2 million EVs sold in Europe in 2021 entering the second-hand market in 2024 intensify challenges. How industry players tackle this issue is crucial for earnings, consumer confidence, and achieving decarbonization goals. The shift towards leasing and adaptation to new battery technologies shape the future of the EV market.
Source: straitstimes.com
