Used electric cars are becoming a European export industry

Image: GWM

The European used electric vehicle market is still underdeveloped at present, even though more than one in five new cars in Europe are fully electric. This leads to increased internationalization in trade, from which large B2B auction providers benefit the most, according to Automobilwoche.

"We are growing much faster than the overall market. This is especially true for the electric vehicle business," said Denis Belan, head of Auto1’s B2B division in Germany, as reported by the industry portal. At Auto1, the volume of used electric vehicle transactions across Europe increased by over 200 percent in the second quarter compared to the same period last year, with a rise of 225 percent in Germany alone. In contrast, the transfer of ownership for battery electric vehicles in Germany only increased by 72 percent in the first half of the year.

Three-quarters of the electric cars traded via Auto1 are exported. According to Belan, reasons for this high export rate include gaps and short-term oversupply in local markets. Many used electric cars currently come from the commercial sector, as private owners tend to keep their vehicles for longer periods. An increase due to private returned cars is not expected until around 2030.

In the commercial sector, large quantities of identical vehicles, such as those returned from leasing programs, can enter the market simultaneously. Since local markets often cannot absorb such surpluses, these vehicles are distributed across Europe through auction platforms like Auto1, BCA, or Autobid. In the second quarter, the most traded model on Auto1 in Germany was the Great Wall Motors Ora 3, even though only just under 5,800 units of this Chinese electric car were registered in Germany at the beginning of the year.

Germany plays a secondary role as a buyer of used electric cars, ranking seventh among target countries for electric vehicles, behind countries such as Romania and Portugal. Most of the vehicles from Auto1 go to France, Spain, or the Netherlands. Hungary and Poland also figure among the top ten destinations.

"Eastern European countries are catching up rapidly in electric cars," Belan told Automobilwoche. German consumers still have many reservations about used electric vehicles. This is only changing now with the sharp rise in prices at charging stations.

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About the author

Thomas Langenbucher is an expert in electromobility with professional experience in the automotive and financial industries. Since 2011, he has been covering electric cars, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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