Electric car industry facing a downturn with cut in prices in 2024

The electric car industry is experiencing a significant downturn, with nearly 80% of new electric vehicles (EVs) being sold at a discount.

Tesla’s recent price cuts in China, the US, and Europe reflect this trend. Despite similar discounts for petrol cars, EV prices are being slashed more drastically.

Read More News

This indicates dealers’ efforts to boost sales amidst a global slowdown in EV demand, evidenced by an 11.3% drop in Europe.

While the discounts benefit consumers, they highlight manufacturers’ challenges in meeting UK sales targets for EVs, driven by government mandates. Further discounting is expected as manufacturers strive to comply with regulations.

Electric Car: Slow demand

Demand for electric cars has slowed, signaling a shift back to petrol vehicles. According to the Society of Motor Manufacturers and Traders (SMMT), the market share of battery electric vehicles (EVs) decreased last month.

EV registrations increased by only 3.8% compared to a 10% growth in the overall car market, with hybrid and petrol-powered cars showing the strongest growth. Petrol-engine sales rose by 9.2%, constituting over half of total sales, while plug-in hybrids saw a 37% increase.

However, EV gains were primarily driven by fleet and business purchases, with sales to individual consumers declining. This suggests that the mass market for EVs remains hesitant due to higher costs and concerns about charging infrastructure.

Read More Business News