7:53 am, November 26, 2023
Discounts on new EVs increased by more than 320% on average between November 2022 and October 2023 as car manufacturers tried to stimulate sales, according to new research.
What Car? said analysis of data showed that between the start of November 2022 and end of October this year, the average combined cash and finance discount for all EVs in the UK rose by 323%, with the average combined discount worth £4,399.
By comparison, discounts for petrol and diesel models grew by 122.7% and 122.5% respectively.
What Car? told Car Dealer it took into account 77 EV makes and 673 individual editions of those models to reach its figures.
The Audi Q4 e-tron 40 Sport, pictured, had the highest discount increase versus last year of 1,177%, translating to a total cash saving of £5,874 against its list price of £50,630.
Meanwhile, the Renault Megane E-Tech EV60 had the next biggest discount increase at 996%, saving people £4,106 on its £41,995 list price.
Third was the Volkswagen ID.3 Pro with an 850% increase in discount, shaving £4,637 off the list price of £37,255.
The discounting trend extended to PCP finance deals, with monthly payments on EV models dropping by an average of 16% over the same period.
In one instance, the monthly PCP payment on a Mercedes EQC fell from £1,094 last November to £594 in October this year – a 46% drop – partly thanks to 0% interest rate terms that are now available, which is down from 9.9% last year.
As of January 2024, car manufacturers will have to achieve a 22% sales mix of EVs, or face heavy fines, as a result of the new ZEV mandate.
What Car? said 15.6% had been achieved so far this year, with the low uptake of EVs among consumers likely to be the reason for the discounts now available.
Editor Steve Huntingford said: ‘While EV sales have grown in 2023, this is down to favourable tax rules tempting company and fleet drivers.
‘However, the huge increase in discounts that we’ve seen over the past 12 months means they can actually make a lot of financial sense for retail customers, too.’
