Electric car manufacturers in the UK have reduced prices significantly to meet government zero-emission targets, boosting sales.
- New car registrations have decreased year-over-year, with a decline in petrol and diesel vehicles as electric car sales rise.
- Electric model prices are approximately 12% lower than last year, as manufacturers aim to clear stock and encourage adoption.
- Tesla’s sales have dropped, while brands like BMW, Mercedes-Benz, and Audi are making gains in the electric vehicle market.
- The UK’s strong positioning in the European zero-emission market is fuelled by competitive pricing and upcoming stringent mandates.
Electric vehicle manufacturers in the UK are aggressively cutting prices to meet stringent zero-emission targets set by the government, a move that has significantly increased sales. According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations fell to 144,000 last month from 153,000 in October 2023. While petrol and diesel sales have waned, the sale of pure electric vehicles rose to nearly 29,000 in October, compared to 24,000 the previous year. This shift indicates manufacturers are prioritising electric models to meet demand and regulatory requirements.
Manufacturers have reduced the cost of electric cars by about 12% compared to the previous year to stimulate sales and clear existing inventory. The SMMT has described this price reduction as ‘unsustainable’ but necessary, as automakers absorb costs to comply with the UK’s zero-emission vehicle (ZEV) mandate. This regulation fines manufacturers £15,000 for each vehicle sold below a 22% electric sales threshold for 2024, incentivising the move towards electric models.
Despite Tesla’s dominance in the UK electric car market, the company experienced a 63% decline in October sales. Conversely, other brands, including BMW, Mercedes-Benz, and Audi, have seized the opportunity to increase their market presence. These brands are rapidly gaining traction, offering competitive alternatives to Tesla’s models.
Richard Alvin, Managing Editor of Electric Vehicles magazine EV Powered, emphasises the UK’s robust position in the electric vehicle market. He suggests that by next year, one in five cars sold in the UK could be electric. As the zero-emission vehicle mandate is set to tighten further in 2025, the UK is expected to lead in Europe’s zero-emission market. This is supported by competitive pricing strategies and the absence of tariffs on electric car models.
The UK’s electric vehicle market is poised for significant growth, driven by strategic price cuts and impending regulatory mandates.
