Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of the potential implications for her policies of recent trends in the residual value of second-hand electric vehicles.

The Government works closely with the automotive industry to monitor the health of the used electric vehicle (EV) market. The Office for Zero Emission Vehicles attends a used EV industry steering group. This includes stakeholders representing independent and franchised dealerships, vehicle auctioneers, rental and leasing companies, and the repair sector. This group actively follows the development of prices and residual values in the used EV market.

Industry intelligence suggests the recent volatility in EV prices was caused by shifts in the supply and demand of used EVs. Such shifts are likely to be felt more strongly in the used EV market, as it is still at an early stage. The Government expects prices and residual values to stabilise as the market matures.