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Electric vehicle depreciation set to stabilise, says CAP HPI

Electric vehicle depreciation set to stabilise, says CAP HPI

The depreciation of electric vehicles is set to stabilise as models become more mainstream, according to automotive data expert CAP HPI.

The company has analysed how electric vehicles are performing in the three largest markets in the European Union to compare trends - the UK, Germany and France.

Commenting on the analysis, Matthew Freeman, managing consultant at CAP HPI Consulting, said: “The next few years will see a wave of new vehicles hit the market, with almost every major manufacturer making significant investments in electric vehicles. The sheer number of battery electric vehicles about to hit the market represents a revolution in not only automotive technology but also in the way that drivers buy, use and interact with their vehicles.

“Fleets will have a key role in managing the transition to battery electric vehicles regarding shifting consumer demand towards the technology, and a new skill-set will be needed to ensure that technology is distributed to the correct drivers.”

Many manufacturers were set to electrify their entire product range by the middle of the next decade, and national governments were actively planning a decarbonised public and private transport network, said CAP HPI.

The study looked at a basket of eight battery electric vehicles, choosing similarly specified models to allow for a cross-market view. The models were the: BMW i3, Hyundai Ioniq, Kia Soul, Nissan Leaf, Renault Zoe, Tesla Model S, VW e-Golf and VW e-UP.

Referring to the UK, Mr Freeman said: “In response to rising levels of pollution, low- and zero emission zones will be rolled out throughout the UK: local government will control these zones, and in many cases, the initial target will be diesel vehicles. This is already having a negative impact on diesel vehicle sales.

“The UK market shows a definite trend to pricing: around the £30,000 mark, the exception, of course, is the Tesla Model S. The premium BMW i3 outperforms the mainstream competition; as does the semi-premium (in the UK) Volkswagen e-Golf.”

The full study is available in a CAP HPI report available for £995. Go to: https://www.cap-hpi.com/reports/electric-revolution