Car makers are offering big incentives to private buyers of new EVs to boost sales
JOHN EVANS
Research by Autocar shows car makers are slashing prices of some new EVs by up to £14,000 in a bid to boost their sales of electric vehicles in the face of flagging consumer interest and to counter the impact of the ZEV mandate, which stipulates that at least 22% of their new car sales in 2024 must be EVs. Offered in the form of a deposit contribution with a PCP – the most popular finance product among private buyers of new cars – price cuts are effectively being made by most car makers on selected EV models.
The Society of Motor Manufacturers and Traders reported that EV registrations claimed 16.9% of the market in April, compared with 15.4% the year before. However, the increase was driven solely by businesses rather than retail demand. The SMMT expects this trend to continue and, as a result, has downgraded its forecast for EVs’ share of this year’s market to 19.8% – notably less than the 22% ZEV mandate threshold.
SMMT CEO Mike Hawes said: “The new car market continues to grow, driven primarily by fleet demand. This is particularly true of the electric vehicle sector, where the absence of government incentives for private buyers is having a marked effect. Although attractive deals on EVs are in place, manufacturers cannot fund the mass-market transition single-handedly.”
Exactly how attractive these deals are is revealed by Autocar’s research. A £14,000 contribution is the largest we found and is available on the Audi E-tron GT Quattro. It dwarfs the contributions that Audi is offering on its other EVs but they are also generous: £7750 on the Q8 E-tron and £5750 on the Q4 E-tron.
Audi isn’t alone. BMW is offering contributions that range from £1561 on the i4 eDrive35 M Sport to £4167 on the iX xDrive50 M Sport. Lexus is incentivising its EV sales with contributions of around £6000 on the RZ Takumi and £4500 on the RZ Premium and UX 300e. Volvo is offering an £8000 contribution on the XC40 Recharge. Meanwhile, rather than a contribution, Polestar is offering a choice of a £1000 price cut, a free home charger or £900 of public charger energy on its 2.
At the other end of the brand spectrum, where competition for EV buyers is equally as fierce, Skoda is offering £4000 off the Enyaq 80 and Volkswagen £3000 off the ID 7 and ID 7 Tourer. The
