The average saving on a new petrol or diesel car is almost half at £2,652, in contrast.
Discounts for new electric vehicles in the UK are now almost double the amount compared to their internal combustion-engined counterparts, new data has shown.
Electric vehicles receive an average of £5,006 in price reduction – compared to £2,652 for a diesel or petrol car, according to automotive analysis and intelligence firm Jato Dynamics.
Battery-powered vehicles have shown a 53 per cent year-on-year increase in discounts across the country. Meanwhile, ICE vehicle discounts have only risen by 13 per cent.
Jato cites the increasing number of budget-focused Chinese electric vehicle brands entering the market and a ‘sluggish’ demand from consumers are key reasons for the widespread discounting of EVs.
However, through Jato’s analysis, it seems that different car makers tackle price reductions differently from others. For example, MG discounts on EVs have risen 106 per cent year-on-year, but BMW’s EV savings have only increased by 14 per cent compared to 2023.
Best-selling electric cars like the MG4 and Hyundai Kona have seen significant reductions in their prices. For example, a new MG4 can be had for £3,508 less compared to last year’s saving of £1,213 – an 189 per cent year-on-year reduction. In contrast, the Kona is now £2,987 cheaper compared to £1,063 12 months ago – an 181 per cent reduction.
Matt Crow, senior product manager at Jato, said: “Our latest research reveals that manufacturers are trying a variety of strategies to make a success of their EV sales operations. Volumes are being protected in some areas; demand is being stimulated in others.
“This is evident in the growing number of incentives offered by both manufacturers and UK dealerships. These dealerships play a crucial role in shaping the market, as they use insights from data to influence negotiations and provide competitive offers that attract buyers.’
“The main takeaway from our latest data is straightforward. Carmakers are offering more generous discounts on EVs than they were at this time last year – and they are allowing buyers of electric vehicles to negotiate more money off than those sticking with ICE powertrains.”
By Cameron Richards