France tries to build trust in used electric car batteries
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In France, the government partnered with automakers including Stellantis and Renault to address falling resale values of used electric vehicles.
Concerns about battery health discourage buyers and lower prices, as a used electric car purchase often means buying a used battery. On September 4, Minister of Ecological Transition Monique Barbut signed a “pact of confidence” with industry stakeholders to display a battery’s “State of Health” (SOH), a percentage showing remaining capacity compared to original capacity, on sales listings.
Nearly 179,000 used electric vehicles sold in 2023, a 30% increase from the previous year, but buyer confidence has not kept pace. Electric vehicles five to eight years old stay in stock for over 200 days, two to three times longer than gasoline cars. Some electric car models lose up to 60% of their value in five years, with a Twingo electric car depreciating by 48% on average within three years, compared to 26% for the gasoline version.
The agreement is voluntary, with no penalties or controls, and a timeline for implementation has not been announced. However, a European regulation requiring digital battery passports with capacity information will take effect on February 18, 2027, for new vehicles, so France is preemptively encouraging transparency. While the SOH percentage does not provide a complete picture of battery health, it offers a common language for buyers and sellers and a point for negotiation.
