INDICATA Market Watch: Used hybrids are the second best-selling used powertrain
Used hybrids are the second best-selling used powertrain
The June online B2C used vehicle market saw petrol account for 60.6% of sales as it remains the first choice of the typical Dutch used v ehicle buyer. But diesel’s fall from grace appears to be close to completion as it fell further into third place as hybrid cemented its position as the second most popular powertrain with a 17.24% market share.
The elephant in the room is undoubtedly BEVs, which were just 6.21% of online B2C sales in June but accounted for 10.6% of online B2C used stock. It would be easy to dismiss this as a timing issue. After all, new BEVs became the most popular powertrain in May, taking a third of all new car sales. However, if we look at the online B2C used car market for cars under two years old, BEVs still only had a 15.95% market share.
Staying with that same age range, diesel has almost been wiped out, with sales taking just 0.97% of the June market of these younger used cars. In contrast, the 40.76% market share of hybrids brings them close to the 42.32% share of used petrol cars.
With BEV demand still sluggish, the increasing level of used BEV stock, which accounts for 10.6% of online B2C used vehicle stock at the beginning of July and 11.27% of used car stock, is a problem. Dealers and traders are struggling to find buyers for the wave of used BEVs appearing, r esulting in the MDS hitting 139 days by the start of July. This means you could sell almost two petrol cars in the time it takes to sell one BEV.
Our online B2C used car retail price index is based on a consistent pool of vehicles indexed against January 2022 and would generally see a lifecycle-driven downward curve in average prices. Average prices going into July made it eight consecutive months of falling prices month-on-month as they dropped 0.5 percentage points, leaving prices 1.9pp higher than in January 2022.
Whilst the reduced volume of diesel stock has increased average diesel prices, the excess BEV supply combined with the weak demand continues to see their prices tumbling.
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Background
On the 24th of March INDICATA published its first White Paper “COVID-19 To what extent will the used car market be affected (and how to survive)?”. This document explored:
Early market trends - Initial impact of the virus and the social distancing measures implemented.
Market scenarios – A range of impacts based on infection rate development and historical market data.
Mitigation – Risk assessment by sector coupled with potential corrective actions.
We committed to keeping the market updated with live data, volume, and price, to keep abreast of the fast-moving environment.
As such we are pleased to announce “Indicata Market Watch”.
How do we produce our data?
Indicata analyses 9m Used Vehicle adverts across Europe every day. To ensure data integrity, our system goes through extensive data cleansing processes.
The Sales (deinstall data) in this report are based on advertisements of recognised automotive retailers of true used vehicles. As such, it does not include data related to private (P2P) advertisements.
Where an advert is removed from the internet, it is classified as a “Sale”.
Appendix
INDICATA Market Watch June 2023 (The Netherlands)
INDICATA Market Watch June 2023 (Europe)
