Auto industry urges swift action to support used BEV market

A coalition of more than 30 companies across the UK’s automotive industry has called on the Government to act quickly to support the used battery electric vehicle (BEV) market, warning that a failure to do so could stall the country’s wider transition to cleaner transport.

In an open letter delivered to Secretary of State for Transport, Heidi Alexander MP, the signatories outlined a series of measures that would help ensure the £1.4 billion pledged by the Government last month delivers lasting impact. The funding was originally earmarked to support the continued uptake of electric vehicles, including vans and heavy goods vehicles.

The initiative was coordinated by the British Vehicle Rental and Leasing Association (BVRLA), which brought together voices from across the automotive ecosystem — including leasing firms, dealerships, charge point operators, insurers, maintenance providers, and driver groups.

“The used car market is nearly four times the size of the new one,” said BVRLA Chief Executive Toby Poston, delivering the letter on Thursday, 10 July. “Maintaining healthy demand and values for second-hand electric vehicles is essential if we want to deliver a sustained transition. The link between the new and used markets is critical.”

Poston warned that low residual values for used BEVs have already begun to impact new car financing, pushing up lease costs and deterring both individual consumers and small businesses from making the switch to electric. “This impacts all customers, especially consumers and SMEs, suppressing demand and eroding confidence across the BEV ecosystem,” he said.

The letter sets out a range of policy recommendations, including targeted grants and subsidies to boost affordability and access, particularly for lower-income households and SMEs. It also calls for investment in training and skills development for BEV maintenance; nationwide public awareness campaigns to build consumer confidence; and the introduction of clear and consistent standards for battery health reporting.

Signatories argue that the used BEV market represents the most cost-effective opportunity to widen EV access while also safeguarding the commercial viability of the new vehicle market.

“We know the Government is listening,” Poston added. “This letter is just one example of how we continue to work with industry and government to highlight how this money can achieve the best return on investment.”

The letter also invites the Department for Transport to engage more closely with the automotive sector to shape a robust and inclusive used EV support framework. A full list of the 33 supporting organisations was included in the submission.