EVs Makers Offer Discounts to Attract Buyers – EnergyPoint Research
Companies that manufacture Electric Vehicles (EVs) are offering discounts to attract buyer says EnergyPoint Research, an independent market-research firm.
Citing FT write up, the firm said in a LinkedIn post that EVs makers are offering deals on battery models in order to sell off vehicles that have been long on waiting lists.
The FT write up is based on financial data compiled by HSBC.
According to EnergyPoint Research, discount in the UK in October was 11 percent, adding that in the US discounts were at 10 percent.
“The FT writes, sales and financial data compiled by HSBC shows carmakers are, for the first time, having to offer deals on
battery models in order to shift vehicles that previously had months-long waiting lists.
“In the UK, the average discount in October was 11 percent below the recommended retail price. In the US, discounts on EVs were at 10 percent. A year ago, discounts were barely offered in Germany where companies are now cutting prices about 7 percent to attract buyers.
“In the UK, two-thirds of new EVS sold are on offer or have heavily discounted interest rates for financing. In the US, discounts offered on EVs have tripled in the past 12 months. Discounting in Germany has remained steady over the past few months, with some carmakers there are still offering up to a fifth off their best-selling models.
“Tesla, for example, has consistently cut prices in Europe, the US and China, to support vehicle sales, denting resales values of models from rival brands,” the firm wrote.
As part of measures to achieve Net-Zero by 2050, the International Energy Agency (IEA) has articulated several milestones that would be necessary to reach the target. These milestones include among others that EVs will have to reach 60 percent of global car sales by 2030.
“The slowdown comes as carmakers struggle to convince a new tranche of buyers to switch from petrol or diesel. After the enthusiasm of the early adopters, the mass market is proving much less forgiving of the foibles of battery motoring,” EnergyPoint Research stated.
“The higher bars for the next group of customers include price, and greater worries over charging infrastructure, and bad publicity about charging and safety.”
“To Sum It Up: Previously, falling battery prices and technology improvements put EVS within striking distance of petrol rivals. Consumers who could charge at home would find their overall costs- sometimes called the “Total Cost of Ownership”- were at parity with engine cars. However, higher interest rates pushed up financing costs and put an end to that,” the firm added.
The Managing Director and Founder of EnergyPoint Research, Doug Sheridan, gave reasons why production of petrol or diesel powered cars may remain for decades to come.
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According to Sheridan, “The likelihood that the sale of tradition ICE vehicles is in fact banned in most markets in Europe and North America, as many greens believe must happen, fades by the day. There’s just too many reasons to maintain production and sale of ICE autos for decades to come, ranging from their ability to be successfully outfitted as traditional hybrids to the inability of grids to support EVs,” Sheridan said in a post on LinkedIn
