Almost eight in 10 new electric cars are being sold at a discount as the industry reels from falling consumer demand. [emphasis, links added]
Some 77 percent of new electric vehicles (EVs) listed on Autotrader were advertised at a discount last month, up from 55 percent a year earlier, data from the company shows.
The degree of discounting is also on the rise, with the average reduction now at a record 11 percent.
It came as Tesla announced a string of price cuts in China, the US, and Europe following a slowdown in sales.
In China, Elon Musk’s company lowered prices across its range, with the Model Y discounted to 249,900 yuan ($34,501) from 263,900 ($36,434) yuan.
The cheapest version of the Model Y in the US was cut to $42,990 (£35,000). Germany’s Model 3 rear wheel drive car was cut by €2,000 ($2,130) to €40,990 ($43,652).
Autotrader said a similar proportion of petrol cars were discounted, in a sign of wider turmoil in the car industry, but that EV prices were being cut more sharply.
About 31 percent of EVs are taking price cuts of at least a tenth, compared to 24 percent of petrol cars.
It suggests dealers are being forced to slash prices to stimulate a significant number of sales, amid a slowdown in demand for electric vehicles globally.
Sales of battery-powered cars dropped by 11.3 percent across Europe in March, according to industry figures.
Experts said the price cuts were positive for consumers, with high costs still regarded as the biggest barrier to more widespread adoption of EVs.
But they also underline the challenges that manufacturers face as they seek to meet new UK sales targets that came into force this year.
Under the so-called zero-emissions vehicle mandate imposed by the Government, 22 percent of vehicles sold by major car makers must be electric in 2024 – a proportion that will continue to rise until a complete ban on new petrol and diesel vehicles in 2035.
Those who fail to hit the target must pay fines or trade carbon credits.
Ian Plummer, commercial director of Autotrader, predicted that discounting would only grow heavier as carmakers scrambled to hit these requirements.
He said: “Sales of electric vehicles are rising but as growth is still being driven from the fleet side of the market, more needs to be done to stimulate electric vehicle demand among private buyers where affordability remains the number one barrier.
“That said, manufacturers and retailers are fighting harder than ever to tempt customers… and that trend only looks set to accelerate as manufacturers struggle to meet strict zero-emissions vehicle mandate targets in a much more competitive landscape.”
However, the arrival of cheaper Chinese models in the UK would “shake up the market and bring down prices for consumers”, Mr. Plummer said.
On Friday, around 41,100 electric cars were listed for sale on Autotrader’s website.
This year the Society of Motor Manufacturers and Traders (SMMT) called for tax cuts on EV sales in an urgent attempt to boost takeup. [At the same time], a House of Lords report also urged ministers to reintroduce “targeted grants” for consumers.
But on Friday the Government, which scrapped plug-in grants for households two years ago, said it saw no need to reintroduce incentives for EV buyers.
Andrew Bergbaum, a global automotive expert at AlixPartners, said the winding back of incentives had “led to a significant reduction in affordability”.
This created overcapacity, with manufacturers forced to slash prices to sell down their inventories, he added.
Read more at The Telegraph
Discounts of 50% are the norm in China and the E.U. Is heading in the same direction.
Ford and G.M. have ceased production of electric cars and are discounting more and more to get rid of the dead stock they have.
Australians-as per usual- are being lied to and conned with empty promises by the federal government.
All Electric car owners will have one thing in common- they will regret the day they bought them.!
The elites do not understand the economics of car purchases yet they are tampering with it. Of the families that buy brand new cars, most can only afford to do so by selling their existing car. However, electric cars have very little trade in value so the financial means which so many use to buy a new car isn’t there. In the US and probably most countries the average family can not afford a brand new car even with a trade in. We rely on used cars. In the US the average car on the road is 12.5 years old. However, electric vehicles don’t remain viable as they age and can not become a major part of the used car market. For that reason the majority of families that rely on used cars will not be driving an EV.
They are not fit for purpose and even Governments are now recognising the fact. Another year or so and you won’t be able to give them away. One Brit on YT was already told thge dealter her boguht hs EV Merc from will not accept it back as a trade-in. No trade in, no real secondary car market for them. They are finished really.
But it doesn’t matter as they were never meant to be more than a way to get us out of private transport altogether as we move to the ghetto living they plan for the 500 million survivors calculated as needed for slave labour to service and supply the elites
Affordability is one issue but not the only one. Big concerns include vehicle range, ability to find charging stations that work, cold temps causing reduced range with fear of being stranded with no charge in the middle of a snow storm (hundreds of cars recently stranded on I-70 west of Denver in the mountains and an EV would have quickly run out of juice trying to keep its occupants warm). These are not problems that cars running on gas or diesel need to fear.
Oh, and those pesky battery fires that seem to regularly crop up.