Electric car prices in the UK have been significantly reduced as manufacturers aim to meet government zero-emission targets.
- New car registrations have seen a decline, with a noticeable drop in petrol and diesel sales as focus shifts to electric vehicles.
- Sales of pure electric vehicles have increased, making them the only growing segment in the automotive market.
- Manufacturers are absorbing costs to avoid fines under the UK’s zero-emission vehicle mandate, leading to substantial price cuts.
- Despite Tesla’s dominance, other brands are rapidly increasing their electric vehicle sales, hinting at a competitive market landscape.
A significant reduction in electric car prices in the UK market is propelling sales, as manufacturers strive to comply with the government’s stringent zero-emission targets. The Society of Motor Manufacturers and Traders (SMMT) reports a drop in new car registrations from 153,000 in October 2023 to 144,000 in the following month. This decline is attributed to diminishing petrol and diesel sales, as manufacturers prioritise electric vehicles to adhere to these targets.
The shift towards electric vehicles is evident, with pure electric vehicle sales almost reaching 29,000 in October, a notable increase from the 24,000 sold in the same month the previous year. Manufacturers have responded by slashing prices, with the cost of electric models now approximately 12% less than in the previous year. This price reduction is part of a strategy to encourage electric vehicle adoption amongst consumers and avert the hefty fines imposed for failing to meet a 22% electric sales threshold under the UK’s zero-emission vehicle (ZEV) mandate.
Ian Plummer, Commercial Director of Auto Trader, highlights the subdued petrol and diesel sales, which reflect the industry’s concentrated efforts to meet zero-emission requirements. While Tesla previously held a leading position in the UK electric vehicle market, it experienced a 63% decrease in October sales. This decline has paved the way for brands such as BMW, Mercedes-Benz, and Audi to strengthen their presence in the market.
Richard Alvin from Electric Vehicles magazine predicts that electric vehicles could constitute one in five car sales next year, given the UK’s robust position and the tightening ZEV mandate in 2025. This forecast is bolstered by competitive pricing and the absence of tariffs on electric models, positioning the UK as a potential leader in Europe’s zero-emission vehicle market.
As electric vehicle sales surge and prices continue to fall, the UK is set to advance significantly in the zero-emission market.
