Discounts on new electric vehicles (EVs) in the UK have nearly doubled compared to those for petrol and diesel cars, according to a report by JATO Market Dynamics. On average, EV buyers received discounts of £5,006 over the past year, significantly more than the £2,652 for internal combustion engine (ICE) vehicles. This marks a substantial 53% year-on-year increase in EV discounts, compared to a modest 13% rise for petrol and diesel cars. Experts attribute this trend to manufacturers’ efforts to meet the UK’s Zero Emission Vehicle (ZEV) mandate, increased market competition—particularly from Chinese brands—and slower-than-expected consumer demand for EVs.
Matt Crow, senior product manager at JATO, noted that manufacturers are implementing various strategies to boost EV sales. The deep discounts are a response to the challenges of the EV market, allowing buyers to negotiate better deals than those opting for ICE vehicles. Crow highlighted the role of dealerships in leveraging market data to offer competitive pricing and attract customers. The aggressive pricing strategies by manufacturers aim to counteract the pressure from government mandates and intensifying competition.
The ZEV mandate, a legislative effort to increase the proportion of EV sales, has been a major driver behind these discounts. Manufacturers face financial penalties if they fail to meet the required EV sales targets, prompting some to adopt aggressive pricing tactics. For example, MG has increased its EV discounts by 106%, and BMW’s discounts on its i4 electric model have more than doubled. These adjustments reflect the intense pressure on automakers to balance market dynamics and regulatory requirements.
Specific EV models have seen particularly steep discounts, especially in the family car segment, which has shown growing adoption of EVs. The MG4, for instance, saw its discounts jump by 189%, while Hyundai Kona discounts rose by 181%. These figures highlight a focused effort by manufacturers to make EVs more appealing to mainstream consumers. Despite these discounts, surveys indicate that many buyers remain hesitant to consider used EVs, suggesting lingering concerns about factors such as battery longevity and charging infrastructure.
The combination of government mandates, market competition, and slower EV demand has driven UK manufacturers to significantly increase discounts on electric cars. The trend indicates a continued effort to make EVs more attractive to buyers and gain a competitive edge. While these discounts represent progress in promoting EV adoption, consumer hesitancy toward used EVs shows that further efforts are needed to address broader concerns and ensure sustained market growth.
