Electric vehicle (EV) buyers in the UK are benefiting from unprecedented discounts as dealerships offer larger incentives compared to those for petrol and diesel vehicles. According to 2023/2024 data on UK car transactions, the average discount on EVs has doubled from previous years, now standing at £5,006 per vehicle, while comparable discounts for internal combustion engine (ICE) cars remain at just £2,652.
This surge in EV discounts highlights shifting dynamics in the automotive industry as new EV brands, particularly from China, drive increased competition and price adjustments.
Market data gleaned from JATO shows that average EV discounts in the UK have risen by 53% over the past year, compared to a more modest 13% increase for ICE vehicles. Analysts at JATO Dynamics attribute this rise to several factors, including intensifying competition and consumer reluctance due to concerns over charging infrastructure and high upfront costs. “The UK electric vehicle marketplace in 2024 is a complex and evolving environment,” said Matt Crow, Senior Product Manager for Sales Link. “Manufacturers are using a variety of strategies to protect volumes and stimulate demand in targeted areas.”
In response, automakers are adjusting their pricing strategies to appeal to different segments of buyers. Notably, MG has increased its EV discounts by a staggering 106% in 2024, aiming to make its models more attractive to budget-conscious consumers. Meanwhile, premium brands such as BMW have implemented smaller increases in incentives overall, though some models, like the BMW i4, saw a substantial discount increase from £3,488 in 2023 to £7,370 this year.
Family-friendly EV models are also seeing impressive discounts, with incentives on the MG4 and Hyundai Kona increasing by 189% and 181%, respectively. The growth in discounts for these models underscores manufacturers’ efforts to make EVs more accessible to family buyers, a segment expected to drive broader EV adoption.
As Crow explained, “With access to our insights, UK dealerships are better equipped to refine their pricing, understand market shifts, and respond effectively to consumer demand, ensuring they remain competitive in the rapidly changing EV landscape.”
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