After years of growth, demand for electric cars in Europe is declining. Car manufacturers are therefore significantly increasing discounts in western markets to counteract falling demand, reports the “Financial Times”
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The sales and financial data compiled by the major bank HSBC show that car manufacturers have to significantly increase prices in order to sell vehicles that previously had waiting lists that lasted months.
In Great Britain The average price discount in October was 11 percent below the recommended retail price. In the USA The discounts for electric cars were 10 percent. And in Germany, where there were hardly any discounts a year ago, manufacturers are now cutting prices by around 7 percent to attract buyers.
Tesla attracts with high discounts
The most prominent example of high discounts on new cars is Tesla. The US manufacturer has already corrected the prices for Model 3 and Model Y downwards several times this year
But the warning signs have also started to flash for other manufacturers. Volkswagen postponed plans for a fourth battery factory, citing “sluggish” demand for electric vehicles in Europe, while Mercedes-Benz waged a “brutal” price war in China blamed for the falling profits.
In Germany, for example, there was a 20 percent discount last month BMW i4, 11.5 percent on the GD4 from the Chinese conglomerate SAIC and 11 percent on the Dacia Spring, currently the cheapest electric car in Germany
In the UK, the electric Fiat 500 and the Peugeot 208e – both models from Stellantis – were each offered more than 22 percent cheaper, while the VW ID.3 and its sister model, the Škoda Enyaq, were offered with a 12 percent discount.
Granted in the USA Hyundai on the Ioniq 5 a discount of $9,400, while ford reduced the price of the Mustang Mach-E by $6,700.
EU Parliament votes for weaker emissions standards
One factor that is currently preventing people from buying an electric car: EU regulations. The former certainty that electric cars were the only option for the future has cracked. “People are very confused because they are now hearing different messages in Europe,” said Linda Jackson (64), Peugeot CEO. Customers who thought they had to choose an electric car are suddenly hearing that there are alternatives, Jackson said.
New combustion engines in Europe should actually have stricter emissions regulations from 2025. This would make new cars thousands of euros more expensive, the European manufacturers’ association Acea repeatedly warned. For smaller models this would mean the end. Now things are different. The rules are much more lax than originally thought. Manager Magazine has researched, how this could have happened.