The electric vehicle (EV) market witnessed a rise in profit margins in May 2025, according to data from Dealer Auction’s EV Performance (EVPR).
Dealer Auction, an independent company formed through a joint venture between Cox Automotive and Auto Trader in 2020, reported a 9.3% increase in retail profit margins. These surpass the already strong numbers from last month and marking the highest average margin recorded this year so far.
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The average sold price for EVs increased by more than £2,000 ($2,707) compared to last month while the average mileage dropped to 27,371 miles, below the 30,000-mile mark.
The average age of vehicles also fell from 3.4 years to 3.2 years, indicating a preference for younger vehicles among dealers and consumers.
Hybrid vehicles experienced a notable boost, with their share of sales rising over 29%, from 5.53% to 7.15%.
This growth reflects the increasing popularity of hybrids, as evidenced by the types of models dominating sales charts.
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By GlobalDataLexus’s UX hybrid compact SUV led the pack with the highest-margin model of the year at £4,722, surpassing Tesla’s £3,710.
Tesla’s Model 3 continued its strong performance, securing second place for average margin among pure-electric models.
The hybrid Hyundai Tucson made a strong comeback, ranking within the top four across all tables. It was the top seller for the fourth time this year and ranked third for CAP Clean performance with 99.13%, and fourth for margin.
The Tucson also topped Dealer Auction’s Retail Margin Monitor for the month.
Dealer Auction marketplace director Kieran TeeBoon said: “Dealerships can take great encouragement from these statistics. Not only is it becoming clearer which types of EVs they should sell, but we can see how the market is frequently demonstrating its profitability.
“May has been another high-performing month for AFVs. We’re seeing growth in profit, sales and consistency in model preferences, all of which is a move in the right direction. It will be exciting to see whether this positive trend continues in next month’s figures.”
