Key facts
- Motorpoint, a major UK used car supermarket, reported a more than doubling of electric vehicle (EV) sales.
- The surge in EV demand is linked to rising oil prices and a shift away from petrol and diesel vehicles.
- Chinese car brands like BYD and MG are significant contributors to the increased EV sales.
- Motorpoint's turnover increased by 8.1% to £1.3bn, with pre-tax profit nearly doubling to £7.5m.
- The company plans further expansion, including opening nine new locations.
Britain's electric vehicle (EV) market is experiencing a significant boom, with sales more than doubling in recent months, according to Motorpoint, a major UK used car supermarket. This surge is largely attributed to the escalating oil prices, triggered by geopolitical events in Iran, which have diminished demand for traditional petrol and diesel vehicles.
Motorpoint CEO Mark Carpenter described the situation as a "watershed moment" for the automotive industry, noting that the company is struggling to meet the high demand for EVs. He indicated that oil price volatility has overcome consumer reluctance towards EVs in the UK.
Analysis suggests that soaring demand for new Chinese vehicles is a key driver of this EV adoption. Brands such as BYD and MG have seen their sales surpass those of established luxury brands like Land Rover and Mercedes, with the Jaecoo 7 being the UK's best-selling car in March.
Motorpoint reported strong financial results, with turnover rising 8.1% to £1.3bn and pre-tax profit nearly doubling to £7.5m for the year ending March. The company plans to expand its operations by opening nine new locations and has increased its final dividend by 20% to 1.2p. Carpenter credited the firm's success to its easy car-buying proposition and the increased use of AI and data analytics.
In early trading on Wednesday, Motorpoint shares rose as much as 7% to 135p, though they remain largely unchanged for the year.