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Consumers are being discounted from EVs due to subsidy inflation and elimination.


Momentum for the switch to electric vehicles has been hit by the double blow of rising inflation and the removal of incentives to buy, pushing the prices of the most affordable plug-in models out of reach for most drivers. It’s being pushed up, experts warn.

According to a report by Electrifying.com, even the smallest electric cars on the market are now well over the average budget.

The Honda-e Supermini, for example, was eligible for the Government’s Plug-in Car Grant (PiCG) a year ago and was priced at £28,000 at the time. It now costs him £37,000 as the scheme has been abolished and inflation has driven the price up.

This makes it more likely that more drivers will abandon the switch to electric vehicles, impacting a broader consumer desire to ditch petrol and diesel vehicles in favor of greener models. There is a nature.

Drivers have lost ownership of EVs: The end of government subsidies and skyrocketing inflation have made even the cheapest electric vehicle prices out of reach for many consumers.

The government’s June decision to end the PiCG offering with immediate effect sparked criticism from within the industry. The automaker said the move was unannounced and comes amid expectations of a tighter cost of living and a decline in big-ticket purchases.

Removing incentives is a no-brainer, especially given MPs are desperate for more people to switch to EVs, especially with the 2030 ban on new petrol and diesel cars looming ever closer. It has been denounced by industry insiders as being contrary to

After a price cut from £2,500 in December 2021, the PiCG was valued at just £1,500 in June against the list price of the most affordable electric car on the market.

This undoubtedly slows down the rapid spread of electric vehicles.

In May, about 15,448 EVs were purchased in the last month PiCG was available to customers. Official figures released by the Association of Motor Manufacturers and Traders show a 17.7% increase over the same month in 2021.

In July, the first full month without incentives, EV sales plunged to 11,139 units, up only 9.9% from 2021, the latest data shows.

EV buyers face the reality of having to find thousands more to get their new car of choice

Ginny Buckley, Electrifying.com

Rapid inflation has only amplified the rising cost of all plug-in cars.

Inflation reached 10.1% in July, well above the Bank of England’s forecast, and is projected to rise to 18% in early 2023. This makes the price of EVs at the lower end of the market invisible to many consumers. Com says.

An analysis of EV owners shows that electric vehicles are mostly driven by people who live in affluent neighborhoods and own properties with off-street parking where they can charge at home.

Battery car sales are growing at a record pace, but commentators say battery cars will start to go mainstream if there is a wider choice of more affordable cars available to those on a tight budget. I’m here.

But even today’s cheapest examples have seen their prices skyrocket in the last 12 months.

With just 135 miles of range on a full charge, the entry price of the Honda-e is about the same as the new BMW 3 Series.

With just 135 miles of range on a full charge, the entry price of the Honda-e is about the same as the new BMW 3 Series.

Take the Honda-e as a representative example.

With the then £2,500 PiCG subsidy applied last year, the entry-level electric Honda Supermini cost £28,215.

Fast forward to today and buyers are expected to pay £36,920 for the lowest spec version. This is almost £9,000, or a 31% price increase in 12 months.

So with just 135 miles of range on a full charge, the Honda-e is just £885 cheaper than the petrol-powered BMW 3 Series Executive Family Sedan.

Electrifying says some manufacturers are even trying to cover up price increases by restructuring trim options and removing incentives such as subsidized loans.

The automaker is trying to hide the price hike by removing the cheapest trim level it previously offered. Hyundai is reportedly doing this with its Ioniq 5 SUV (pictured).

The automaker is trying to hide the price hike by removing the cheapest trim level it previously offered. Hyundai is reportedly doing this with its Ioniq 5 SUV (pictured).

Hyundai, for example, has dropped the cheapest trim option on its Ionic 5 SUV in recent weeks, while its sportier seat sub-brand Cupra has increased its financial annual rate by 1.1% to 7%.

The website’s founder, Ginny Buckley, fears rising prices for electric vehicles and significant delays in orders will weigh on demand.

“Electric car buyers face the reality of having to find thousands of pounds more to get their new vehicle of choice,” said an EV expert.

“Add this to the fact that drivers have to wait up to 14 months to get behind the wheel, and we see electric vehicles potentially out of reach for many hardworking families.

“The subsidies have made a big difference for many people, so I hope interest-free car loans similar to those available in Scotland will become available. can be used for the purchase of

Buckley said the government needs to step in and make electric vehicle ownership more affordable, including lowering the VAT from 20% to 5% when charging using public devices.

“If we don’t take these steps now, we risk leaving people behind at a critical time of the electrical revolution,” she added.

The entry-level Ford Mustang Mach E has jumped a whopping £8,700 since March due to inflation, Electrifying.com says.

The entry-level Ford Mustang Mach E has jumped a whopping £8,700 since March due to inflation, Electrifying.com says.

Rising inflation is pushing up the price of more expensive electric vehicles.

For example, Ford’s Mustang Mach SUV has risen significantly by £8,700 since March, with an increase of £2,500 in the last two months.

The entry-spec model cost £41,330 earlier this year. It now sets the buyer back £50,030 before any optional extras are added.

This comes despite Ford dealers warning that production restrictions related to continued shortages of semiconductors could delay delivery of the pony-badged EV by up to 12 months.

BMW, the top of the market, is another manufacturer whose prices have skyrocketed. In the past two months, iX’s price has risen over his £7,400 to £77,305.

However, there are some brands whose models are rising at a slower rate than the rest of the market.

The Volkswagen ID.3 is up just £360 since the beginning of the year, but industry-wide delivery delays means those who order today won’t receive it until 2024.

Estimating Delivery Delays for Popular Electric Vehicles

naAudi e-tron: 18 months

Audi Q4 e-tron: 18 months

naBMW i4: 9-12 months

BMW iX: Three months

naCitroen e-C4: Three months

naBorn in Cupra: Three months

naDS 3 Crossback E-Tense: Four months

Fiat 500e: 5-6 months

naFord Mustang Mach-E: 9-12 months

Hyundai Ioniq5: 7 months

Hyundai Kona: 2 months

naJaguar I – Pace: up to 6 months

naKia Niro EV: 3-6 months

naKia EV6: 12-15 months

naKia Soul: 12 months

naLexus UX300e: 12 months

naMazda MX-30: up to 6 months

naMini electric: 6-9 months

naNissan Leaf: 5 months or more

Nissan Aria: 7 months

Peugeot e208: 6 months

Peugeot e2008: 6 months

Polestar 2: 6-8 months

naPorsche Taycan: 12 months

Renault Zoe: 3-4 months

naSkoda Enyak: 18 months

naTesla Model S: 18-24 months (no production)

naTesla Model X: 18-24 months (no production)

naTesla Model 3: 6-9 months

Tesla Model Y: 3-6 months

Vauxhall Corsa-e: 3-4 months

Vauxhall Mokkae: 3-4 months

VW ID.3: 12-18 months

naVW ID.4: 7.5 months

Source: Electrifying.com. Accurate data as of August 10, 2022

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