Electric vehicle discounts have dipped slightly in August, bucking the broader trend of rising incentives across the new car market as dealers prepare for the September plate change.
Data from Autotrader shows the average discount on new cars reached 10.5% this month, up from 10.3% in July and 9.8% a year earlier. The increase reflects typical pre-plate-change stock clearance, a key sales period in the UK automotive calendar.
Electric vehicles followed a different pattern. Their average discount fell from 11.3% in July to 11.2% in August, indicating a more cautious pricing strategy.
Demand stays strong, but EVs lag in discount growth
The difference comes as overall demand in the new car market remains steady. Visits to Autotrader’s new car platform rose 9% from July and 2% compared with last year, showing buyers are actively researching ahead of September.
Bex Kennett, head of new car at Autotrader, said the figures suggested a competitive registration period ahead. “We’re seeing encouraging signs, with consumers becoming increasingly active as they begin researching their next new car,” she said. “Retailers and manufacturers are preparing through increased stock availability and competitive offers.”
Related: Older cars gain popularity in UK market
The gap between electric and internal combustion discounts has narrowed. While traditional cars saw incentives climb, electric models—often priced higher—did not follow the same path. Automakers appear to be balancing affordability with profitability as government subsidies end and competition grows.
Electric vehicle pricing has shifted before. In 2023, discounts on these models surged as automakers cleared excess stock, only to tighten later when supply chains improved. The current adjustment may mark a return to more strategic pricing, especially as Chinese brands expand in Europe.
Chinese brands climb the ranks as premium demand holds
Four of the ten most in-demand new car models on Autotrader this month came from Chinese manufacturers, with the MG S9 leading the group. MG also topped EV manufacturer enquiries, while the Renault 5 was the most sought-after electric model overall.
BMW led brand enquiries, followed by MG and Land Rover. Three Land Rover models appeared in the top ten, showing strong demand for premium European vehicles even as budget-conscious buyers turn to lower-cost options.
Kennett highlighted the range of interest across the market. “Whilst established brands continue to dominate electric vehicle consideration, Chinese brands are increasingly attracting buyer interest across the wider new car market,” she said.
Related: Best used electric cars for 2025
Autotrader’s data also showed a 9% month-on-month rise in new car platform visits, supporting expectations of a busy September. Dealers usually increase incentives before the plate change, a period responsible for about 20% of annual new car registrations in the UK.
The small decline in electric vehicle discounts may not indicate a broader slowdown. Instead, it suggests automakers are testing buyer tolerance. With Chinese brands expanding and premium marques maintaining their position, the next few months could determine whether the electric vehicle market’s pricing strategy will change permanently.
Older cars have also gained popularity in the UK, offering another option for cost-conscious buyers.
For those considering an electric vehicle, the best used models for 2025 provide a more affordable entry point.
