Tesla Deals Could Drive Electric Vehicle Sales to Record Levels in September

Model Ys are said to be piling up at Southampton docks

September has the potential to become a milestone month for electric car sales in the UK, thanks to attractive finance offers from manufacturers, particularly Tesla. As car makers strive to meet the zero-emission vehicle (ZEV) mandate, which requires 22% of new car sales to be electric this year, they are offering discounts of around 9.6% on the price of electric cars. Tesla’s standout offer is a personal lease deal of £299 per month for the Model Y, the UK’s top-selling electric model. This offer, along with other incentives, could significantly boost overall EV sales.

Meeting the ZEV Mandate

The ZEV mandate has put pressure on car manufacturers to increase electric vehicle sales and avoid fines. While some flexibility is allowed, many major brands, including Volkswagen, Ford, Toyota, and Renault, are making a concerted effort to raise EV sales. In the first half of the year, these manufacturers fell significantly below their sales targets. To meet the mandate, manufacturers are offering discounts on electric cars, averaging £5596 or 9.6% off the original price.

Tesla’s September Push

Tesla’s aggressive marketing strategy for September is expected to have a significant impact on EV sales. The company is offering a highly attractive personal lease deal of £299 per month for the Model Y, the UK’s best-selling electric model. This offer surpasses Hyundai’s lease deal for the Kona electric SUV, making the Model Y a more affordable option. To take advantage of this offer, customers must take delivery before the end of the month, which coincides with Tesla’s financial quarter-end.

According to a Reddit post, there is a large number of Model Ys at Southampton Docks, indicating Tesla’s efforts to meet the high demand for their vehicles. Tesla’s strong push in August resulted in record-breaking EV sales, with the Model 3 and Model Y outselling BMW by a ratio of two to one. This surge in sales helped Tesla secure the top spot in the electric car market, surpassing BMW.

Overcoming Buyer Wariness

Steep discounts and generous company car incentives are helping to overcome buyer wariness of electric vehicles. Retail discounts include £6750 off the price of an Audi Q4 E-tron and £3500 off the Honda e:Ny1. Audi leads in offering the highest average discount of £8553 per car across all fuels. Personal leasing deals for electric cars are also available on aggregator sites like leasing.com, with offers starting at £277 per month for a Vauxhall Astra Sports Tourer EV.

Challenges and Future Outlook

While electric vehicle supply remains strong, car manufacturers are facing profit margin pressure due to significant discounting. Some dealerships claim that car makers are reducing the supply of combustion-engine vehicles to meet their EV targets. Stellantis has criticized the UK’s ZEV mandate for 2024 but has not joined the European automotive lobby group in calling for flexibility in the 2025 European Union CO2 restrictions. However, next year, car makers like Stellantis will introduce more budget-friendly EVs, narrowing the price gap with combustion-engine models.

With attractive finance offers and increasing availability of electric vehicles, September has the potential to break the 50,000 mark for EV sales in the UK, making it the second month to achieve this milestone. As car manufacturers continue to prioritize EV sales to meet regulatory targets, the future of electric vehicles in the UK looks promising.