Car manufacturers are cutting car prices by thousands to avoid fines

Carmakers are offering big discounts on new electric models from brands including Citroen, MG and Peugeot as they come under pressure to comply with new net zero laws introduced for 2024.

Companies are cutting their fees to beat electric car sales targets required by new Zero Emissions Vehicle (ZEV) legislation.

The regulation ensures that a certain proportion of companies’ annual turnover consists of zero-emission models such as electric vehicles and hybrid vehicles.

The target is currently 22% of total production, with heavy fines imposed on producers who fail to meet their quotas.

Companies will be charged a whopping £15,000 fee for any vehicle that falls below the target, which could be a massive financial hit for brands.

Concerns have led to prices for expensive electric vehicles being slashed before the end of the year in a bid to encourage drivers to switch.

The analysis shows that the average discount was consistently around 12.4%, which would make it one of the highest discounts ever offered in the industry.

DS has cut the cost of its DS3 Crossback machine by more than a third, with potential owners expected to enjoy over £13,000 off.

According to data from leading new and used car marketplace AutoTrader, models are selling for just £24,345, despite the average RRP being £37,862.

The MG5 is also down 34.2 per cent, with prices rising from £33,151 to £21,813 in November.

Next up is the MGZS, with prices falling from £33,243 to £23,237, a fall of 30.1%, with just two months left in the year.

The DS3 came fourth on the list, with prices falling to £28,883 from their previous peak of £41,320.

Some Citroen electric cars fell by well over 23%, while there were also significant discounts on Peugeot and Jaguar models.

The popular I-Pace has fallen in price by more than 20%, with the cars now available for just £62,038, down from the previous price of £78,331.

However, the ZEV mandate will tighten every year and manufacturers will need to ensure that 28% of sales meet the threshold by 2025.

AutoTrader spokesman Ian Plummer warned that the rule could be “very painful” for manufacturers.

He stressed that many companies would likely “sell vehicles at a loss,” but acknowledged that the move would likely lead to an increase in the number of motorists considering electric vehicles for their next purchase.

Ian explained: “This type of discount finally allows the consumer to make a rational decision to purchase an electric vehicle, rather than basing it on emotional reasons such as environmental factors.”