Manufacturers in the UK slash prices on electric vehicles to boost sales and meet governmental emission targets.
- October saw a drop in overall new car registrations as electric vehicle sales notably increased.
- Price reductions of electric cars by approximately 12% have been reported, sparking growth in the zero-emission category.
- Leading brands like BMW, Mercedes-Benz, and Audi gain market share despite Tesla’s significant sales drop.
- The UK’s Zero Emission Vehicle mandate imposes penalties for not meeting sales thresholds, pushing manufacturers towards aggressive pricing.
As electric vehicle manufacturers in the UK aim to meet government zero-emission goals, they have significantly reduced prices to stimulate sales. The Society of Motor Manufacturers and Traders (SMMT) reported a decrease in overall new car registrations, from 153,000 in October 2023 to 144,000 last month, with petrol and diesel sales particularly impacted. However, electric vehicle sales rose to nearly 29,000 units in October, marking a notable increase from 24,000 units in the previous year, making it the only growing category.
Manufacturers have cut electric vehicle prices by about 12% from last year to encourage adoption and clear inventory. The SMMT describes this move as an act of “unsustainable discounting” due to manufacturers absorbing costs to comply with the UK’s Zero Emission Vehicle (ZEV) mandate. This mandate fines manufacturers £15,000 per vehicle if they do not achieve a 22% sales threshold for electric models in 2024.
Despite leading the UK electric vehicle market, Tesla experienced a 63% decline in sales in October, allowing competitors like BMW, Mercedes-Benz, and Audi to gain a foothold in the expanding market. Ian Plummer, Auto Trader’s commercial director, noted that “subdued petrol and diesel sales” are indicative of manufacturers’ focused efforts to meet these stringent requirements.
Richard Alvin, Managing Editor of Electric Vehicles magazine EV Powered, commented on the UK’s strong position within the electric vehicle sector, projecting that one in five cars sold next year could be electric. The landscape is further shaped by the ZEV mandate, which will become more stringent in 2025. With competitive pricing and no tariffs, the UK is poised to lead Europe’s zero-emission vehicle market.
The proactive pricing strategies and regulatory pressures are steering the UK rapidly towards an electric vehicle future.
