Yahoo Finance Sales of second-hand electric cars hit record high
Sales of second-hand electric cars have hit a record high even as the overall market shrinks.
Pre-owned chargeable vehicles sales rose 44.1pc to 16,775 in the third quarter, according to the Society of Motor Manufacturers and Traders (SMMT).
The sharp jump came even as overall second hand car sales fell by more than a tenth, as fewer cars were put on sale.
Production problems have created a supply crunch for new vehicles, meaning drivers are hanging onto their motors for longer.
A growing proportion of new car sales are also electric, accounting for 15pc of purchases last month. Manufacturers are increasingly prioritising electric car production as a means of hitting their carbon targets and boosting profits, thanks to higher margins and sales prices.
Used electric cars are seen as an important way to speed up adoption, given their lower price compared to new vehicles.
Mike Hawes, SMMT chief executive, said: “It’s great to see a growing number of used buyers able to get into an electric car. The demand is clearly there and to feed it we need a buoyant new car market, which means giving buyers confidence to invest.”
It came as Jaguar Land Rover and Nissan both reported ongoing problems sourcing the computer chips needed to manufacture their cars.
Jaguar Land Rover missed its delivery targets after one of its suppliers failed to supply it with the computer chips it needed.
Nissan separately said that production for the year will be 7.5pc below its previous target of 3.7m cars due to chip issues.
Jaguar Land Rover, Britain’s biggest car brand, said it is pressing ahead with a plan to sign long-term deals with chipmakers to help ease the shortage which is affecting most large car producers.
Despite the disruption, sales of new, pricier models helped Jaguar Land Rover slash losses for the three months to the end of September. Sales rose by more than a third to £5.3bn and it posted a narrower loss of £173m, compared to £302m a year ago.
Thierry Bolloré, Jaguar Land Rover’s chief executive, said: “Demand for our most profitable and desired vehicles remains strong and we expect to continue to improve our performance in the second half of the year, as new agreements with semiconductor partners take effect, enabling us to build and deliver more vehicles to our clients.”
Nissan said it expected issues with supplies of chips to persist in the months ahead.
“In the second half of the fiscal year, the company expects to face continued shortages of semiconductor supply and increasing raw material prices,” the Japanese company said. "Despite these challenges, Nissan will continue to introduce new models and improve the quality of sales."
However, a weaker yen and high demand will keep the company profitable. First half profits were up 12pc to 196.9bn yen.
