1:57 pm, February 3, 2026
The UK is offering some of the biggest EV discounts of any major European market, as carmakers battle to comply with ZEV mandate targets.
A new study by HSBC bank has found that the average discount offer on an electric car in the UK was a whopping 12.8% in the first month of 2026.
Compare that to Europe’s biggest car market – Germany – where the average stood at 10.2% and it is clear that the government targets are continuing to take their toll.
The study, reported in The Times over the weekend, also found that the Cupra Born was the most discounted EV, with an average of 26.5% knocked off the list price.
That was followed by the Dacia Spring – already the cheapest EV in Britain – which was discounted by an average of 23.5%.
Analysts also found that the Volkswagen ID.4, attracted reductions of 21.8%, rounding off the top three.
Elsewhere, HSBC’s experts found that used EV prices continued to tumble in January, dipping 7.4% in the opening month of the year.
At the same time, plug-in hybrids fell by 4.5% and diesels were 2.7%. The only powertrain to see a rise in prices were petrol models, which rose by 1.5%.
Despite the measures, analysts said the discounts were unlikely to have any benefits to customers, adding: ‘Where the carmaker cuts list prices to make the vehicle attractive for customers, if the projected residual value of the vehicle goes down by the same amount, there is no benefit to the customer.’
The report comes after a study by Startline Motor Finance found that most UK car dealers expect manufacturers to meet current ZEV mandate targets.
However, last month Stellantis’s European boss said that firms are currently ‘burning cash’ as there there is ‘no natural demand’ for EVs.
One of the biggest industry critics of the government targets has been Vertu boss, Robert Forrester, who describes the measures as ‘utopian’.
He said: ‘Demand is not there for the utopian targets that increase each year, adding more pressure on manufacturers and retailers.
‘The new pay-per-mile tax in 2028 exacerbates the issues, reducing EV demand and necessitating even more incentives from the sector. These in turn reduce residual values of EVs and a vicious cycle commences.
‘This is why the UK must adjust EV sales targets and reduce fines now so that they reflect underlying demand.’
