Zenith Automotive Holdings Ltd has secured a £100 million cash injection from its private equity owner Bridgepoint to weather a sharp downturn in used electric vehicle prices. The funding comes alongside an extension of debt maturities from its lenders, providing crucial breathing room for the UK-based fleet management company.

The move highlights the mounting pressure on EV fleet operators as residual values for used electric vehicles have fallen sharply, squeezing margins across the sector. Zenith, which manages thousands of corporate and retail electric vehicles, has been hit particularly hard by the rapid depreciation in EV values amid slowing demand and increasing competition.

Bridgepoint's decision to double down on Zenith underscores the challenges facing the EV transition, where falling battery prices and technological advances are creating headwinds for fleet operators. The funding will help Zenith stabilize operations while the broader market adjusts to the evolving dynamics of electric vehicle ownership and resale values.