Zenith sees profits drop after 'exceptionally challenging year' as used electric car prices drop

The company said profitability had been impacted by weakness in used car prices, particularly affecting electric vehicles.

Zenith’s results recorded a £51.4m impairment “reflecting the recent sustained fall in battery electric vehicle used prices”.

Last September, then Prime Minister Rishi Sunak delayed the ban on the sale of new petrol and diesel cars from 2030 to 2035.

Tim Buchan, Zenith chief executive officer, said despite the difficult wider environment for the sector, the company has had a positive year.

“This has been an exceptionally challenging year for the automotive sector, with much uncertainty about the ban on internal combustion engine vehicles, including the five-year delay to the 2030 deadline,” he said.

“I’m proud of the way we are responding to the challenges, finding ways to mitigate the risks and impact on our business.

"Extending leases within our existing Battery Electric Vehicle (BEV) fleet, launching new products to new markets and ensuring our fleet has a healthy balance of BEVs and ICE vehicles, all help to meet the needs of our customers while driving the success of our own business.

“I’d like to take this opportunity to thank the Zenith team for another successful year. They drive this business forward, ensuring we add value to everything we do. Thank you also to our customers and partners for their ongoing support and confidence in Zenith.”