New research has revealed that discounts on electric vehicles (EVs) are nearly double those being offered to buyers of petrol and diesel cars, as manufacturers ramp up efforts to boost EV sales.
According to data from JATO Market Dynamics, EV buyers in the UK received an average discount of £5,006 over the past 12 months, compared to just £2,652 for internal combustion engine (ICE) vehicle shoppers.
The report highlights a significant 53% increase in discounts on EVs compared to the previous year, while discounts on petrol and diesel cars have risen by only 13%. Industry experts attribute this sharp rise in EV discounts to several factors, including manufacturers’ attempts to meet the government‘s Zero Emission Vehicle (ZEV) mandate, increased competition from new market entrants—particularly Chinese brands—and slower-than-expected consumer demand for EVs.
Matt Crow, senior product manager at JATO, said: “Our latest research reveals that manufacturers are trying a variety of strategies to make a success of their EV sales operations.
“Carmakers are offering more generous discounts on EVs than they were at this time last year – and buyers of electric vehicles are able to negotiate better deals than those sticking with ICE powertrains.”
Crow also emphasized the crucial role dealerships play in shaping the market by using data insights to offer competitive deals and attract buyers. As competition heats up and manufacturers aim to meet government mandates, it seems likely that the trend of deepening EV discounts will continue.
Recent findings by JudgeService revealed most car buyers will not consider buying a used electric vehicle (EV), despite falling prices and improved supply.
The ZEV mandate, a controversial piece of legislation, requires car manufacturers to ensure a specific percentage of their sales come from electric vehicles or face financial penalties. This pressure, combined with growing competition in the EV market, has led some automakers to adopt aggressive pricing strategies.
MG, for instance, has more than doubled its EV discounts over the past year, with reductions increasing by 106%. Meanwhile, BMW’s discounts have grown by a more modest 14%, despite the discount on its i4 electric model more than doubling, from £3,488 to £7,370.
The report also shows that family car models, where EV adoption is growing, have seen some of the biggest discounts. MG4 discounts have soared by 189%, rising from £1,213 to £3,508, while Hyundai Kona buyers saw a discount increase of 181%, with reductions jumping from £1,063 to £2,987.
