Fleets are reporting discounting on EVs for the first time, says AFP

The Association of Fleet Professionals (AFP) has noted that discounts are starting to appear on new electric vehicles (EVs) for the first time since they entered the mass market.

The AFP’s 2023 conference featured talks that discussed how the recent price cutting by Tesla and the arrival of new manufacturers from China are helping to create a more competitive environment, alongside a gradual ramping up of production volumes of EVs following the pandemic.

Mike Potter, Drive Electric chief executive, told the conference: “It’s really a sign that EVs are becoming a normal part of the fleet market as well as the sector seeing a return to something a little closer to traditional market conditions.

“We’re not talking about massive discounts but the time when all EVs were sold at list price appears to have passed, at least for the time being.

“The moves made by Tesla appeared to us to be designed to try to prompt some kind of price realignment in the EV market and, to some extent, that has worked – although it has arguably had negative effects in terms of setting future residual values.

“Certainly, others have had to look at their own sales to fleets and whether incentives needed to be introduced.”

Potter also said new brand entrants from China have also been a factor in driving down prices.

MG is already an established fleet choice at the entry level EV end of the market and Potter said the arrival of others such as BYD could have a similar impact in the mid-market.

He added: “BYD’s product appears to be strong enough to challenge existing players and if availability is good, they could mount a serious challenge.”