Automotive Business Magazine – Q2 2026 – Digital edition - Magazine - Page 68
FEAT U R E
INDUSTRY OUTLOOK
AI can also have practical implications
on the fleet side of the automotive
spectrum. Holt explains: “AI-driven
telematics can now go beyond basic
tracking and reporting, instead
providing predictive insights that help
fleets anticipate problems before they
happen. This includes forecasting
vehicle downtime, identifying risks and
optimising maintenance schedules to
keep vehicles on the road for longer.”
The connection between AI and vehicle
electrification for fleets is not to be
dismissed. From optimising charging
behaviour and route planning, to
balancing vehicle availability and
depot capacity.
Holt adds: “This becomes even
more critical as fleets prepare for
future usage-based taxation, where
inefficiencies translate directly into
higher costs.”
The used dilemma
The used vehicle market has always been
fairly solid; however, the increase of EVs
creates an additional challenge for the
used sector.
Trust is a key factor for consumers
buying second-hand electric vehicles,
and for many, doubts persist.
Companies like Generational focus on
creating battery health checks to support
drivers wanting to make the transition to
a used EV.
For many, second-hand will be their
way into the EV sector, as the prices of
new cars makes the shift less accessible.
It is important, then, that 2026 sees trust
in used EVs continue to grow.
Golding notes that the used EV market
is performing relatively well in terms of
demand and pricing. He explains that as
time passes, more options for EVs are
becoming available in increasingly lower
price bands.
He adds: “Volumes being defleeted are
increasing rapidly, and this picture could
change quickly. It’s easy to envisage a
situation in which oversupply leads to
residual values falling further from their
already low levels.”
However, Holt sees this as a sign that
the market is going to grow.
He says: “Early adopters are now
feeding younger, better-understood
electric vehicles into the second-hand
ecosystem, bringing more transparency
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Q2 2026
around battery health, servicing, and
real-world performance.”
Oversupply is a concern for many in the
industry, as it has seen volumes rise and
prices fall previously.
Bengtsson says: “We expect there
to be continued downward pressure
on the residual values of used cars in
2026, as new cars are continuing to be
released and introduced at increasingly
competitive price-points, which makes
used cars less attractive unless their
price is comparably cheaper.”
In 2026, the market
will be highly sensitive
to signals that either
reinforce or undermine
long-term certainty”
Battery health testing is where retailers
and fleet managers can marry their
expectations of the future of electric
vehicle adoption. Data from Geotab
shows that EV batteries had a 2.3% rate
of degradation in 2020, which improved
to 1.8% in 2023.
Versteegen explains: “Trust in the used
market will only grow where retailers can
clearly demonstrate condition, usage and
suitability. Strong visuals and accurate
data will help buyers see value beyond
the policy headlines.”
Holt says: “As confidence improves,
used EVs will move from niche to normal.
Buyers will focus less on range anxiety
and more on value, running costs, and
reliability. That shift will be critical for
widening access to electrification beyond
new car buyers.”
Slow and steady
Following years of turbulence, the rate of
recovery is vital to understand how the
market will move in 2026.
Evans says: “New car sales should
continue to recover, with EVs taking a
growing share of the market, and the
focus will shift to reliability, affordability
and ease of use. Success will increasingly
depend on how well vehicles, software
and charging infrastructure work
together in real-world conditions, not
