Diesel sales and prices to increase due to delay in ICE ban

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【Summary】The delay in the ban on new ICE sales is expected to lead to a rise in sales and prices of used diesel cars. In August, used diesel car sales reached a record low, while used petrol sales increased. However, with the extension of the ICE ban to 2035, sales of new and used diesel cars are predicted to increase. On the other hand, the prices of used EVs continue to fall, leading to a rise in demand. The top three fastest-selling used cars in August were the Toyota Prius, BMW i3, and VW ID.3.

FutureCar Staff Sep 22, 2023 6:18 AM PT

Diesel sales and prices to increase due to delay in ICE ban

New and used diesel cars could see a resurgence in popularity after the Prime Minister's decision to extend the ban on new internal combustion engine (ICE) sales. According to Indicata's Market Watch report, sales of used diesel cars hit a record low in August. The data shows that diesel cars up to four years old made up only 16.1% of total car sales, while used petrol cars accounted for 54.6%, hybrids for 22.5%, and battery electric vehicles (BEVs) for 6.6%.

However, Jon Mitchell, the UK group sales director, believes that the extension of the ICE ban until 2035 will lead to an increase in sales for both new and used diesel cars. Mitchell states that diesel engines still offer the best combination of fuel economy and practicality, especially for larger SUV and 4x4 owners. He also predicts that the decreasing supply of used diesel cars, coupled with rising demand, could result in higher prices.

Indicata's data also reveals a decline in used electric vehicle (EV) prices, with a decrease of 1.4% in August. Compared to January 2022, EV prices are now 35.5% lower. The falling prices have contributed to an acceleration in sales. The Market Days' Supply (MDS) measurement, which calculates the available supply of cars divided by the average daily retail sales rate over the past 45 days, shows that used EVs now have an MDS of just 45.7 days, the lowest in Europe.

Mitchell notes that the demand for used EVs continues to rise due to the falling prices and the record-low MDS. He also highlights the potential impact of the Prime Minister's announcement on the demand for used EVs, as consumers now have more time to transition to electric vehicles.

The increasing demand for hybrid and electric cars is evident in Indicata's list of the top three fastest-selling used cars for August, which includes the Toyota Prius, BMW i3, and VW ID.3. Meanwhile, the Ford Fiesta remains the top-selling used car in the UK, followed by the VW Golf and Mercedes A-Class.

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