2:08 pm, October 9, 2024
Discounts on EVs are averaging nearly double what buyers of ICE vehicles are being offered, new research has revealed.
Data compiled by JATO Market Dynamics found that on average, EV buyers have been offered a discount of £5,006 in the past 12 months.
That figure is just under double what petrol and diesel shoppers have been offered – an average of £2,652.
Experts also found that EV discounts across the UK market have increased by 53% compared to the same point last year, while vehicles with internal combustion engines have only seen a 13% per cent rise.
The findings come as manufacturers look to increase their sales of electric vehicles, in order to comply with the controversial ZEV mandate.
The much-debated government legislation requires a certain percentage of the sales of every car manufacturer to be electric, otherwise, firms will face financial penalties.
This year, the required percentage is 22 per cent, rising each year to 80 per cent in 2030.
Car makers unable to meet their targets will be fined, with the government proposing a £15,000 penalty for every non-electric car and £18,000 per non-electric van they miss their target by.
Vertu boss Robert Forrester recently accused manufacturers of limiting the supply of ICE Vehicles to dealers in order to meet targets.
JATO’s analysts believe that the steep increase discounting can also be attributed to heightened competition from new entrants to the market, particularly Chinese brands, and sluggish demand from consumers.
Examining its numbers more closely, the firm uncovered some interesting trends which highlight how differently manufacturers are approaching the issue.
On one hand MG’s discounts on EVs have increased by 106% in the past 12 months, demonstrating ‘an aggressive pricing strategy to capture market share’.
However, on the flip side, BMW has increased discounts by just 14% in the same period, despite the discount available on its i4 mid-size electric offering more than doubling from £3,488 to £7,370.
Bigger discounts are also available for new MG4 and Hyundai Kona models than at this time last year, reflecting heightened competition in the family car arena, where EV adoption is growing relatively rapidly.
The discount on an MG4 leapt from £1,213 to £3,508, up 189 per cent year-on-year, while the discount on a Hyundai Kona jumped from £1,063 to £2,987, up 181 per cent.
Matt Crow, senior product manager at JATO, said: ‘The UK electric vehicle marketplace is a complex and multi-layered environment in 2024.
‘Our latest research reveals that manufacturers are trying a variety of strategies to make a success of their EV sales operations. Volumes are being protected in some areas; demand is being stimulated in others.
‘This is evident in the growing number of incentives offered by both manufacturers and UK dealerships. These dealerships play a crucial role in shaping the market, as they use insights from data to influence negotiations and provide competitive offers that attract buyers.
‘The main takeaway from our latest data is straightforward. Carmakers are offering more generous discounts on EVs than they were at this time last year – and they are allowing buyers of electric vehicles to negotiate more money off than those sticking with ICE powertrains.’
