AVERAGE discounts on new electric vehicles have increased by 204% since last January as car manufacturers work to stimulate sales, according to new research by What Car?

Analysis of the discounts available through What Car?’s New Car Deals service has revealed that, from January 2023 to January this year, the average cash and finance discount on EVs rose by 204% (from 2.4% to 7.5%). This equates to a £3149 increase in the saving and means the average combined cash and finance discount for EVs is worth £4603.

The growth of EV discounts has far outstripped those for petrol, diesel and hybrid models, where the average discount over the last 12 months rose by only 36%, to £3831 (an additional saving of £1256).

A drop in demand for EVs among private buyers is believed to be fuelling the discounting, while the UK Government’s new ZEV Mandate (which requires car manufacturers to achieve a 22% sales mix of EVs in 2024, or face heavy fines) has only added to the pressure to shift EVs.

The number of car makers offering double-digit percentage discounts on EVs via What Car? New Car Deals has increased from just two in January 2023, to six this year.

What Car? editor, Steve Huntingford, said: “Electric vehicle sales grew last year, but this was due to tax rules favouring company and fleet drivers. By contrast, the extensive discounts that we’re now seeing target private buyers.”

“It will be interesting to see if these incentives can tempt more private buyers to go electric in 2024, particularly in light of the new ZEV Mandate. With some brands offering up to a fifth off the price of an EV, the importance of shopping around has never been clearer.”

Double-digit EV discount brands in January 2024