CEO Update

Used car market up despite 2021 volatility

11 February 2022 #CEO Update

There was some good news for the industry this week with the used car market returning to growth in 2021. Transactions rose 11.5% on 2020 to more than 7.5 million, though activity was still below where we were pre-pandemic and performance throughout the year was volatile. Whilst the second quarter was the best Q2 on record, declines in the second half of the year as the global shortage of semiconductors squeezed new car supply, restricted used stock levels and hence transactions.

Despite these challenging conditions, demand for used battery electric (BEV) and plug-in hybrid electric (PHEVs) vehicles hit record levels, growing by 119.2% and 75.6% to 40,228 and 56,861 transactions respectively. Hybrid electric vehicle (HEV) sales also rose by 50.3% to 137,639, a new high.

With the chip shortage expected to begin to ease later this year, releasing more new cars into the market, we anticipate increasing numbers of the latest, cleanest and zero emission models to become available for second owners. Demand for personal mobility has undoubtedly increased during the pandemic, so it’s vital we have healthy new car sales to drive fleet renewal and the used car market if we are to improve air quality and address climate change.

Elsewhere this week we are delighted to announce our third keynote speaker for SMMT Electrified 2022, taking place on 23 March at the QEII in London. Lars Stenqvist, Executive VP of Volvo Group and Head of Volvo Group Trucks Technology will join the line-up of influential industry and political speakers to explore the automotive sector’s progress in spearheading the charge towards Net Zero. For more information and to register for tickets, please visit the event page here.

Finally, registration for the UK’s largest road transport exhibition, the Commercial Vehicle Show 2022, is now open. Taking place at the NEC Birmingham from 24-26 May, the Show will feature exhibitors such as Ford, Harris Maxus, Toyota, Trakm8 and Whale Tankers. For your ticket and further information click here.

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