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Electric car prices slashed as manufacturers push to meet zero-emission targets

Electric car sales surged by 24% in October, capturing over 20% of the new vehicle registrations market, thanks to extensive discounting by manufacturers eager to meet government zero-emission targets.

According to the Society of Motor Manufacturers and Traders (SMMT), new car registrations dropped from 153,000 in October 2023 to 144,000 last month, with petrol and diesel sales declining as manufacturers prioritised electric models.

The sale of pure electric vehicles climbed to nearly 29,000 in October, up from 24,000 a year earlier, making zero-emission vehicles the only category to show growth. To clear stock and encourage EV adoption, manufacturers have slashed prices, with electric models now selling for around 12% less than last year.

The SMMT highlighted the “unsustainable discounting” as manufacturers absorb costs to hit targets under the UK’s zero-emission vehicle (ZEV) mandate, which fines manufacturers £15,000 per car if they fall below a 22% electric sales threshold in 2024.

Ian Plummer, commercial director of Auto Trader, noted the shift towards EVs, adding that “subdued petrol and diesel sales” reflect manufacturers’ efforts to meet these requirements. Despite Tesla’s leading position in the UK market, it saw a 63% drop in October sales, making way for other brands like BMW, Mercedes-Benz, and Audi, which are rapidly gaining ground in EV sales.

Richard Alvin, Managing Editor of Electric Vehicles magazine EV Powered, underscored the country’s strong position in the EV market, projecting that one in five cars sold next year could be electric. With the ZEV mandate tightening further in 2025, the UK is positioned to be a leader in Europe’s zero-emission vehicle market, supported by competitive pricing and no tariffs on electric models.

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Electric car prices slashed as manufacturers push to meet zero-emission targets