EV market faces deepening crisis as residual values plummet, finds ADS

Plunging residual values in the electric vehicle (EV) market are creating substantial financial challenges for leasing companies, manufacturers, and customers alike, according to Auto Data Solutions (ADS) which is warning of a prolonged impact on the sector.

ADS is calling for greater collaboration within the industry and enhanced data transparency in order to mitigate risks, seeing extended warranties and GAP insurance as potential revenue opportunities during this period of uncertainty.

Re-leasing older EVs is also highlighted as a strategy to provide consumers with affordable options while avoiding an oversupply of vehicles in the used market. It noted that leasing companies are already adapting by extending contracts and re-leasing used EVs, a move designed to generate revenue and delay exposure to falling residual values.