Richard Peberdy, UK head of automotive at consultancy giant KPMG, said many consumers were turning to the used car market to buy EVs amid concerns about depreciation in value.
He said: “The evidence increasingly suggests that accelerating private EV sales may require similar incentivisation, particularly if the Government is going to reinstate the 2030 end to new petrol and diesel vehicle sales.
“While choices in the new car market are improving, EV prices – and the scale and rate of price depreciation when buying from new – remain major barriers to convincing consumers to buy a new EV.
“Subsequently, many consumers that are looking to transition to an EV are deciding that the used EV market is a more attractive way to do that.
“Despite used EV sales growing, the higher rate of stock that is currently coming into the used market is still pushing the price of some models down even further.
“All of this context continues to pose big questions regarding how car makers will meet their [ZEV] mandate targets.”
However, Jamie Hamilton, automotive partner and head of electric vehicles at Deloitte, suggested falling interest rates may also help to rekindle demand, as many people buy new EVs on car finance deals.
Last week, the Bank of England announced its first interest rate cut since 2020.
Mr Hamilton said: “We are seeing some signals in the market that consumer sentiment is rising.”