The market for used electric cars in Belgium has experienced significant growth in the first six months of 2024, nearly doubling compared to the same period last year,

according to data from mobility organization Traxio. The increase, amounting to 87.3 percent, is largely attributed to the Flemish purchase premium for electric vehicles.

Between January and June, a total of 10,112 used electric cars were registered, with private individuals and companies registering nearly equal numbers. However, private buyers saw the most substantial increase, registering 135 percent more used electric vehicles than the previous year, totaling 4,970 cars.

Traxio highlights the impact of the Flemish government's purchase incentives, newly implemented this year, as a key driver behind the surge in registrations. "More than three-quarters of the private used electric cars were registered in Flanders," Traxio notes.

However, Traxio anticipates a potential decline in the market post-2024 once the purchase premium expires. The organization predicts a lasting impact on the market for several years to come.

Additionally, the market is facing challenges related to oversupply, particularly as more electric cars are returned at the end of leases. Unlike conventional cars, there is limited demand for used electric vehicles in Eastern and Southern Europe, further impacting their residual values.

Traxio also reports a decline in residual values due to price decreases and the introduction of more affordable electric car models. For instance, the residual value of a Tesla Model 3 reportedly dropped by up to 30 percent after four years.

In contrast to the used car market, Belgium has seen robust growth in new electric car sales, with 64,429 registrations in the first half of 2024—a 47.5 percent increase from the previous year. This growth is primarily driven by electric company cars and leased vehicles, supported by favorable tax policies and incentives like the Flemish premium.

Traxio emphasizes that while the market for new electric cars is thriving, challenges such as oversupply and decreasing residual values pose ongoing considerations for stakeholders in Belgium's electric vehicle sector. Photo by jepoirrier (Jean-Etienne Minh-Duy Poirrier), Wikimedia commons.