The second-hand value of 10 best-selling battery cars in the United States, including models from Tesla, General Motors and Ford, fell an average of 28% in 2023, according to the data from CarGurus and compiled by HSBC, Financial Times reported.
In the UK, the value of the used EVs fell about a fifth, far higher than the overall market where the resale values dropped only 3.7%, according to the bank which referred to Auto Trader data.
The resale values are a core indicator of a vehicle’s desirability, reflecting what a second-hand buyer is willing to pay for a model that is typically about three years old. the report added.
EV pricing “is likely only to get tougher in 2024”, said the bank’s analyst Mike Tyndall, who warned the wind down of subsidies in countries such as Germany and France “could force carmakers to get aggressive on pricing”.
Carmakers are likely to have to erode what little profit margin they have in EVs in order to prevent them being undercut by new, cheaper models from China, he added.