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Average levels of discount on EVs in the UK have reached record highs, according to data from Auto Trader.
In March, EV offers reached record highs as average new EV discount peaked at 11%. A discount of 20% or more had been offered on 11% of new EVs, compared to 2% of petrol cars with that level of discount.
A discount of 15% or more was offered on 18% of new EVs, compared to 7% of petrol cars with this level of discount.
Ian Plummer, commercial director of Auto Trader, 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 #1 barrier.
“That said, manufacturers and retailers are fighting harder than ever to tempt customers, as more than three-quarters of new EVs are now advertised on our website with discounts, with the average discount applied increasing to 11% last month, the highest on record.
“That trend only looks set to accelerate as manufacturers struggle to meet strict Zero Emission Vehicle mandate targets in a much more competitive landscape. The arrival of new Chinese entrants is likely to continue to shake up the market and bring down prices for consumers.”
In the new car market, EV RRPs are around 33% more expensive than ICE and not all brands offer significant discounts.
Honda and SsangYong offering the highest average discount (23%) while Kia, Mercedes-Benz and Skoda offering the lowest average discount (3%).
Of new EVs advertised on Auto Trader, 77% had some level of discount in March 2024. The figure for the same month last year was 55% for EVs and 69% for petrol.