New data has found that discounts for new electric vehicles in the UK have reached an average of £5,000 as manufacturers look to help motorists switch as sales stutter.
New analysis has found that the average electric vehicle receives an average of £5,006 in price reduction, compared to £2,652 for a diesel or petrol car.
Across the UK, battery-powered vehicles have shown a 53 per cent year-on-year increase in discounts, while internal combustion engines have only risen by 13 per cent.
The research, from Jato Dynamics, suggested that the rise in popularity of new Chinese electric vehicle brands could be the reason for the widespread discounting of EVs.
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The MG4 has seen some of the biggest price drops in the last year
MG
It noted how there had been a “sluggish” demand for electric cars from consumers as prices remain high and people struggle with charging solutions if they don’t have a driveway.
MG has made the largest discounts, with a 106 per cent year-on-year rise in price cuts for motorists as it looks to get people to ditch petrol and diesel vehicles.
MG has a range of electric vehicles on offer including the Cyberster performance car, the MG4, ZS and MG5 Long Range. It also sells hybrids including the MG3, MG ZS and MG HS.
The British brand, which is now controlled by Chinese state-owned SAIC Motor, has sold an impressive 62,189 vehicles in total this year – representing 1.99 per cent of total market sales.
The popular MG4 can be purchased for £3,508 less compared to last year’s savings of £1,213 – an 189 per cent saving.
In comparison, the electric vehicle savings for BMW have only increased by 14 per cent compared to 2023.
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. Volumes are being protected in some areas; demand is being stimulated in others.
“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 latest data from the Society of Motor Manufacturers and Traders (SMMT) found that battery electric vehicles made up 20.5 per cent of the total new registrations.
In September, 56,387 new electric cars were registered, more than triple the number of new diesel cars. However, a total of 137,793 new petrol vehicles were registered, cementing its 50 per cent market value.
Despite the continued dominance of petrol vehicles, the new sales of unleaded-fuelled cars have seen a 9.3 per cent drop based on year-on-year sales.
Electric vehicles have seen a solid 24.4 per cent jump in sales compared to the previous year, beaten only by the boost in registrations for plug-in hybrid vehicles (32.1 per cent increase).
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Drivers can benefit from even larger price cuts on new electric vehicles compared to last year
PA
Crow continued, highlighting the impact of incentives on consumers, adding that the main takeaway from the data was “straightforward”.
He added: “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.”
