Discounts helping drive electric vehicle demand in the retail market

The Honda e:NY1 is July’s most in-demand new electric vehicle (EV), and the 7th most in demand new car among all fuel-types, rising from the UK’s 254th in June, according to Auto Trader.

The battery powered SUV, which is the month’s fastest growing new car model overall and pure electric car, generated more enquiries than any other model, accounting for more than one in every 10 EV leads sent to a retailer.

It is the second time this year that Honda’s flagship EV has topped the charts, resulting from large discounts and attractive finance offers.

Auto Trader says it highlights the impact of affordability in driving consumer engagement for brand new EVs, and the steps manufacturers are taking to stimulate demand in response to this year’s ZEV Mandate targets.

Since July last year, average discounts have risen from 6.6% to 8.7%, with three quarters of all new cars now offering some level of discount.

The average discount currently applied to EVs is 10.6%. However, as well improving affordability, brands are also responding to the challenge by improving consumer choice, with Auto Trader recording a significant uptick in the volume of new cars advertised on its platform in recent months, rising 21% between January and July.

Auto Trader’s new car performance director, Bex Kennett, said: “The new car market continues to face a challenging combination of new regulatory targets, increased competition, growing production, and softening retail sales.

“However, our data does offer some optimism as we approach the key plate change month of September. Manufacturers are working hard to stimulate demand, and we’re seeing consumers respond as a result.”

Auto Trader’s data, which is based on circa 2 million monthly new car visitors, suggests that improved choice and affordability is also proving a compelling combination for consumers.

Familiar ICE vehicles out in front

Outside of electric models, Volkswagen’s Golf topped the charts for the second successive month as the most popular overall new car in July, generating a 4.3% share of all new car enquiries.

It was closely followed by the Range Rover (3.6%) and Defender 110 (3.1%) into second and third place. 

At a brand level, the top three most in-demand marques this month are BMW (14.3%), Land Rover (12.7%) and Volkswagen (10.2%). They’re way ahead of the rest of the pack, with Audi in fourth generating a more conservative 6.6% share.

Most in demand new car models 

Rank	Make	Model	Share of enquiries
1	Volkswagen	Golf	4.3%
2	Land Rover	Range Rover	3.6%
3	Land Rover	Defender 110	3.1%
4	Land Rover	Range Rover Sport	2.5%
5	Hyundai	Tucson	2.5%
6	Volkswagen	Tiguan	2.1%
7	Honda	e:Ny1	1.8%
8	BMW	1 series	1.7%
9	BMW	3 Series	1.7%
10	Cupra	Formentor	1.4%

Source:Auto Trader

Most in demand new car brands 

Rank	Make	Share of enquiries
1	BMW	14.3%
2	Land Rover	12.7%
3	Volkswagen	10.2%
4	Audi	6.6%
5	Hyundai	5.2%
6	MG	3.6%
7	Nissan	3.4%
8	Mercedes-Benz	3.2%
9	Kia	3%
10	Honda	2.9%

Source:Auto Trader

Most in demand new car electric models 

Rank	Make	Model	Share of enquiries
1	Honda	e:Ny1	11.2%
2	Hyundai	IONIQ 5	8.5%
3	Nissan	Leaf	5.2%
4	Tesla	Model 3	4.8%
5	MG	MG4	4%
6	Kia	EV6	3%
7	Kia	EV9	2.6%
8	Lotus	Eletre	2.2%
9	Audi	Q8 e-tron	2.1%
10	Cupra	Born	2.1%

Source:Auto Trader 

Most in demand new car electric brands

Rank	Make	Share of enquiries
1	Honda	11.2%
2	Hyundai	10.1%
3	MG	8%
4	BMW	7.8%
5	Nissan	6.9%
6	Tesla	6.5%
7	Kia	6%
8	Audi	5.2%
9	Peugeot	4.9%
10	Ford	3.7%

Source:Auto Trader