Insurers are scrapping petrol and diesel vehicles at double the rate of electric vehicles (EVs), according to a recent study by automotive data experts cap hpi.
The analysis compared EVs with internal combustion engine (ICE) vehicles, revealing the following statistics:
- For vehicles aged one year and under: 40 EVs (0.01%) out of 334,525 on the road were scrapped, compared with 701 ICE vehicles (0.03%) out of 2,026,146.
- For vehicles aged three years and under: 782 EVs (0.09%) out of 912,341 were scrapped, compared with 10,300 ICE vehicles (0.18%) out of 5,788,617.
- For vehicles aged five years and under: 1,433 EVs (0.13%) out of 1,130,581 were scrapped, compared with 33,700 ICE vehicles (0.33%) out of 10,278,745.
Jonathan Clay, cap hpi Identification Director, emphasized the importance of understanding the impact on scrappage rates, particularly with EVs having higher repair costs. He noted that despite the higher costs, EVs are less likely to be scrapped than petrol and diesel vehicles, showcasing their durability and potential cost-effectiveness over time.
Transitioning to EV fleets prematurely was highlighted in a survey, and there are signs of price parity between used BEVs and ICE cars in Q1 2024, according to INDICATA.
FAQs
Are EVs more durable than petrol and diesel vehicles?
Yes, the study by cap hpi revealed that EVs are being scrapped at a lower rate compared to their ICE counterparts, indicating greater durability.
Why are repair costs higher for EVs?
According to a Solera study, repair costs for EVs can be up to 29% higher than those for ICE vehicles.
Conclusion
The data analysis by cap hpi contradicts claims that EVs are scrapped more frequently than petrol and diesel vehicles. With EVs showing lower scrappage rates and potential cost-effectiveness over time, the transition to EV fleets should be a well-informed decision for the automotive industry.
