Used EV sales surge, on track to top 70,000 units this year

35,272 units traded in H1, up 57% on-year

1 in 10 used cars now eco-friendly; Ioniq 5 leads

Industry calls for broader battery data to boost market

An inspector examines a vehicle at Hyundai Motor's certified used-car production center. [Hyundai Motor]

As new electric vehicle sales continue to climb, the used EV market is expanding rapidly alongside them. After annual used EV transactions exceeded 50,000 units for the first time last year, the market recorded more than 35,000 trades in the first half of this year alone — putting it on course to surpass 70,000 for the full year. Industry insiders say making battery performance data more widely available will be key to sustaining that momentum.

According to Carisyou Data Research Institute, 35,372 used passenger EVs changed hands in the first half of this year, a 57 percent increase from the same period last year. With 6,868 units sold last month, analysts project full-year used EV transactions will exceed 70,000 if the trend holds.

The boom in used EV trading tracks the earlier surge in new EV sales. Analysts say vehicles that entered the market when EV adoption took off — particularly after Hyundai Motor launched the Ioniq 5 in 2021 — are now flowing into the used-car market in significant numbers.

Hyundai Motor's Ioniq 5. [Hyundai Motor]

Early skeptics had argued that battery degradation — the gradual loss of capacity through repeated charging and discharging cycles — would dampen demand for used EVs. In fact, used EV transactions have grown at roughly 50 percent annually. Last year, annual volume topped 50,000 units for the first time.

The shift is even more pronounced when all eco-friendly vehicles are counted together. The share of hybrid, electric and hydrogen vehicles in used passenger-car transactions rose from 2.7 percent in the first half of 2021 to 11.1 percent in the first half of this year — meaning more than one in 10 used passenger cars sold is now an eco-friendly model.

By contrast, the share of diesel and LPG vehicles has been declining. Gasoline-powered cars still dominate, accounting for 58.4 percent of all used passenger-car transactions in the first half of this year.

Among individual models, the Hyundai Motor Ioniq 5 was the most actively traded used EV, with 5,618 units changing hands from January through July. Kia's EV6 came second with 4,299 units, followed by Tesla's Model Y at 4,035 units.

EV battery status information provided by Kia's certified used-car service. [Kia Certified Used Cars website]

As the new EV market expands, industry voices are calling for more proactive disclosure of battery-related information in the used-car market as well. New EV sales reached 199,000 units in the first half of this year, representing 23.3 percent of total vehicle sales. Tesla's Model Y has joined Kia's Sorento near the top of the sales rankings, reflecting the broader mainstreaming of electric vehicles.

Specifically, industry insiders say buyers need access to maximum driving range relative to the new-vehicle standard, battery performance data and battery management system (BMS) information so they can properly assess a used EV's condition before purchase.

Hyundai Motor and Kia's certified used-car programs — operated directly by the automakers — currently provide maximum single-charge range compared to the new-vehicle figure, along with a five-tier battery rating. Kia's certified used-car program plans to go further, adding detailed data including state of health, cumulative charge and discharge cycles, and minimum and maximum battery temperatures.

By contrast, used-car dealer K Car and automotive trading platform Encar do not offer such battery information. As the used EV market grows, industry observers say the infrastructure for giving consumers objective, verifiable battery data must be expanded accordingly.

"Under current regulations, battery information including BMS data can only be confirmed if automakers and battery manufacturers provide it," an industry official said. "Providing sufficient battery performance information — what customers want to know most — is what will truly activate the used EV market." The official added that used-car dealers also need to invest in expanding the diagnostic equipment required to assess battery condition.

eyre@heraldcorp.com