EV discounting eases as ZEV Mandate shift gives OEMs breathing room

Electric vehicle (EV) discounting appears to be softening in the wake of fresh changes to the government’s Zero Emission Vehicle (ZEV) mandate, according to the latest data from Auto Trader.

Following a strong March - fuelled by the arrival of new ‘25’ registration plates and deep discounts to drive demand - discounting across new cars has cooled slightly in April.

The average discount across all fuel types dipped from 9.3% in March to 8.6% this month. For EVs, the drop was more pronounced, falling from 11.7% to 10.3% off recommended retail price.

Bex Kennett, new car performance director at Auto Trader, described the latest data as encouraging for OEMs. “Although softening slightly on March’s strong plate change period, consumer interest for new cars remains robust.

“Along with the relaxation in ZEV targets, this should come as welcome news for manufacturers facing uncertainty around the introduction of new tariffs.”

Despite the modest reduction in discounts, interest in new vehicles continues to climb. Auto Trader reported an 11% year-on-year (YoY) increase in visits to its new car platform this April, while the volume of new cars advertised jumped by 10% YoY - an indication that retailers are seizing the opportunity to meet demand.

Leading the charge in consumer interest is the Volkswagen Golf, currently the UK’s most-enquired-about new car, followed by the all-electric MG ZS and the Land Rover Range Rover.

Notably, Chinese newcomers such as Jaecoo and BYD are also gaining traction. Jaecoo’s 7 SUV claimed the seventh spot in terms of enquiries, while BYD’s Seal U tied for ninth alongside the new Cupra Terramar.

MG continues to dominate the EV brand leaderboard with a 15.5% share of new electric car enquiries. However, BMW is quickly closing the gap, climbing to an 11.7% share, while Skoda - bolstered by the strong performance of its new Elroq model - secured third place at 7.1%.

The Skoda Elroq and BMW’s i4 model saw the fastest month-on-month growth in lead share among electric vehicles, with the Elroq rising by 2.1 percentage points and the i4 by 3 points, highlighting increased consumer responsiveness to newly launched or revamped EV models.

To support retailers in the highly competitive new car space, Auto Trader is rolling out a new ‘New Car Offers’ feature, enabling dealers to showcase transparent finance offers directly on their listings. The functionality is now available to retailers, with consumer-facing features launching later this month.