Car manufacturers are slashing prices on new electric vehicles (EVs) by up to £14,000 in an effort to boost sales and meet the requirements of the Zero Emissions Vehicle (ZEV) mandate. The ZEV mandate stipulates that at least 22% of new car sales in 2024 must be EVs. Autocar’s research reveals that most car makers are offering price cuts on selected EV models in the form of a deposit contribution with a Personal Contract Purchase (PCP) finance product.
While EV registrations accounted for 16.9% of the market in April, an increase from the previous year, this growth was primarily driven by businesses rather than retail demand, according to the Society of Motor Manufacturers and Traders (SMMT). As a result, the SMMT has downgraded its forecast for EVs’ market share this year to 19.8%, below the 22% ZEV mandate threshold. SMMT CEO Mike Hawes attributes this slower growth to the absence of government incentives for private buyers and emphasizes that manufacturers cannot single-handedly fund the mass-market transition to EVs.
Autocar’s research highlights some attractive deals on EVs, with Audi offering a £14,000 contribution on the Audi E-tron GT Quattro. Other car manufacturers, such as BMW, Lexus, Volvo, and Polestar, are also offering generous contributions ranging from £1,561 to £8,000 on selected EV models. Skoda and Volkswagen are providing discounts of £4,000 and £3,000 respectively on their EVs.
Vauxhall stands out with deposit contributions of £7,450 on the Corsa Electric Design and £4,590 on the Mokka Griffin. Peugeot offers a contribution of £6,500 on the e-2008, while Mazda provides £6,000 off the MX-30. Renault offers a £2,750 contribution on the Mégane E-Tech and has announced a £500 price cut and enhanced equipment levels across its range.
The value of the contribution offered by car manufacturers is influenced by factors such as the vehicle’s list price, popularity, and level of competition. Larger contributions often come with low-rate finance options, while more modest contributions may be paired with zero-rate interest offers. In addition to price cuts and contributions, many deals include free home chargers or free public charging, although rarely both.
Dealers are also boosting deals further by offering discounts worth an average of 11%, a record figure. Audi attributes its decision to offer generous PCP deposit contributions to the E-tron GT’s life cycle change and the upcoming availability of an updated version of the car in the UK. They expect continued interest in EVs, especially with new models like the Q4 and A6 E-tron being introduced.
Overall, these price cuts and incentives aim to make EVs more affordable and attractive to consumers, encouraging greater adoption of electric vehicles and helping car manufacturers meet the ZEV mandate. As the market for EVs continues to grow, it is likely that more competitive pricing and attractive deals will be offered to drive further consumer interest in electric vehicles.
