Car dealers are slashing EV prices by 14% to stir-up dwindling demand
Car dealers are slashing the price of their new electric models in a desperate bid to reinvigorate sales in the face of waning demand for electric vehicles (EVs).
Discounts of up to 14 per cent are now available on some EVs as manufacturers look to stir-up appetite – a telltale indicator that consumer interest is going flat.
It translates to cash savings of more than £4,000 on some EVs, according to market research conducted earlier this month.
It is the latest in a wave of reports in recent weeks to point to electric car demand dwindling despite there being just 79 months until the Government’s ban on sales on new petrols and diesels from 2030 is introduced.
Dealers slashing new EV prices to spark demand: A new market study has found that manufacturers are heavily discounting electric models to increase demand. A Nissan Leaf, for example, can be bought with 14.2% off the list price
The biggest market reflection of the falling demand for EVs in recent months has come from Tesla, with the US brand hitting headlines for cutting the price of its new models on various occasions so far this year to attract customers.
But other brands are now starting to follow suit, slashing their showroom prices in an effort to attract more buyers, this latest analysis has found.
What Car? sent mystery shoppers to dealerships across the UK to track down the biggest discounts on battery-powered models.
The Renault Zoe in ‘Iconic’ trim level has an on-the-road price of £31,995. However, What Car? says you can pick one up for just £29,262 – that an 8.8% saving, which works out at £2,734 off
The Peugeot e-208 is a relatively popular small EV. This ‘Allure Premium +’ spec car would normally cost £32,645 but dealers have cut that by 5.8%
Discounts of up to 5.7% are available at Smart UK dealers for the EQ Fortwo Coupe. This translates to £1,250 off the £22,225 OTR price
Peugeot’s e-2008 is a crossover version of the smaller e-208 above. Dealers are trimming the OTR price by more than 5%
The research found the top 12 discounted EVs come with an average cash saving of six per cent – the cash equivalent of £2,185.
The Nissan Leaf 110kW Acenta tops the savings with a discount of 14.2 per cent – equating to £4,105 – offered by sales staff in dealers.
Renault outlets are also willing to discount a Zoe R135 100kW Iconic by 8.8 per cent, which works out as a saving of £,2734.
And Peugeot’s dealer network have been found to be selling the e-208 100kW Allure Premium at 5.8 per cent less than retail price – that’s £1,831 less than listed on the French brand’s website.
Nissan’s Ariya is its latest family SUV. Despite only just hitting UK showrooms, dealers are knocking 5.2% off the list price of £50,140 – that’s a saving of more than £2,600
Citroen dealers were found to be discounting the 100% electric E-C4 from £35,495 to £33,761
A rival to the Citroen E-C4 is the Vauxhall Mokka-e. Dealers are cutting prices by almost 5%, which works out at £1,806 off the £38,835 retail price
Jaguar, the British car brand that’s due to go fully electric in the next 3 years, currently only has one EV on sale – the I-Pace. Dealers are willing to knock 4.5% off the £73,500 of one trim level
What Car?’s Target Price mystery shoppers also found that, over the last six months, the average combined cash and finance discount for fully electric vehicles in the UK has increased by 33.3 per cent.
In comparison, discounts for petrol and diesel models have grown by 10.8 per cent and 8.8 per cent respectively.
What Car? editor Steve Huntingford said: ‘Discounts on electric cars have traditionally been low due to demand outstripping supply, but our latest Target Price research clearly shows that there are now big savings available on certain models.’
Mazda’s MX-30 is another EV What Car?’s mystery shopper team found being heavily discounted
The Renault Megane E-Tech is another pretty new model to enter the UK market, with first deliveries only arriving at the turn of the year. Despite this, dealers are knocking 4% off prices
BMW’s i4 – the electric equivalent to a 3 Series – is another pricey EV with a discount. Dealers are knocking almost £2k off the price of the £51,500 eDrive M Sport version
Last month, online car marketplace Auto Trader said that buyer interest in new EVs had slumped by nearly two-thirds since the start of last year.
Its own data shows a 65 per cent drop in inquiries for electric cars compared to 12 months prior.
The company’s Road To 2030 report blames the decline in demand on a variety of factors, such as their premium prices, the cost-of-living crisis, higher interest rates for borrowing and an increase in energy prices.
One of Britain’s biggest motor dealers also spoke out regarding a fall in appetite for battery vehicles, saying demand is ‘cooling’ as a result of there not being enough charging points available.
Vertu Motors slammed the ‘inadequate public charging infrastructure’ as contributing to the slowing momentum around EVs.
Even the UK’s motor trade body has admitted that electric car registrations are not growing as fast as they expect or would like to see – and has already adjusted its forecast for sales this year and next as a result.
The Society of Motor Manufacturers and Traders last month downgraded its predictions for EV market share in 2023 from 19.7 per cent to 18.4 per cent.
It also lowered its forecast for 2024, saying it now estimates that 22.6 per cent of all registrations next year will be pure-electric cars, down from the 23.3 per cent it had forecast in January.
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