Battery Electric Vehicles (BEVs) are currently underperforming the overall market, according to cap hpi in its May car editorial. In April, while the overall market fell by 1%, BEVs saw values fall by 4.7% at the 3-year point (the equivalent of around £1,050), and by 3.8% at the 1-year point (equating to a decline of over £1,300). cap hpi reported that this is the eighth consecutive month of deflation for EVs, with a cumulative movement over that period of a 34.6% drop. In comparison, petrol values have moved back by only -1.1% since October last year. Although not as severe as the three previous months, April saw a decline of 5.4% in EV values. However, cap hpi did note that fewer EV models are dropping in value as much as they previously were.
Cap hpi found that in April, EVs costing under £20,000 were worst affected. Those between £15,000 and £20,000 at trade price dropped by 6.6%, or around £1,350. cap hpi attributed this in part to there being more volume available in the market for this price range of vehicle. However, it also noted that there is a growing trend in that some of the cheaper and mid-priced EVs are coming under more pressure, a direct impact from the realignments seen on products like the Tesla Model 3, which now has retail adverts starting in the early £20,000s.
