Reluctance in the Second-Hand EV Market
Despite the global push towards electric vehicles (EVs), the second-hand market faces a setback as consumers hesitate to embrace used EVs, impacting both resale values and new EV sales.
Factors Driving Second-Hand EV Aversion
In the $1.2 trillion second-hand car market, prices for battery-powered cars are declining faster than their combustion counterparts. Factors contributing to this trend include the absence of subsidies, consumer wait-and-see attitudes for evolving technology, and ongoing gaps in charging infrastructure.
Global Dynamics Impacting Automakers
A fierce pricing war initiated by Tesla and competitive Chinese models is causing a substantial drop in the values of both new and used EVs. This not only poses a challenge to major automakers like Volkswagen and Stellantis but also impacts the broader automotive market.
Industry Strategies for Future Resilience
Anticipating intensified challenges in 2024 when a significant number of EVs from 2021 leasing contracts enter the used market, industry players are formulating strategies. The focus is on mitigating losses, boosting consumer confidence in used EVs, and sustaining environmental targets amidst changing market dynamics.
Source：stuff.co.nz
