Private EV sales finally on the rise, thanks to cheap deals, greater choice

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4 mins read

8 April 2025

Private customers are turning towards electric cars in greater numbers than ever before in a sign that growing choice at the cheaper end of the market is persuading customers of petrol and diesel models to make the switch.

Figures seen by MG show that retail sales of electric cars were up 59% in the first two months of the year, compared with 40% for the EV market overall. With March included, EVs accounted for over a fifth of the new car market, according to figures from the Society of Motor Manufacturers and Traders.

MG attributed the rise to keener pricing at the lower end of the market. “All retail customers want outstanding value for money and the lowest running costs they can possibly get,” Guy Pigounakis, commercial director of MG in the UK, told Autocar. “But the monthly payments outweigh anything else.”

For the past couple of years, MG has largely had the budget end of the EV market to itself with the MG 4 EV compact hatchback costing from £27,000 with PCP monthly figures from £269. The electric ZS SUV, now replaced by the S5 EV, also came in below £30,000.

But the availability of new models such as the Dacia Spring city car from £14,995 and the Kia EV3 SUV from £33,000 in a segment with pricing normally over £40,000 is helping to lure private sellers towards a market that has so far largely been driven by fleets.

Last year, for example, fleets accounted for four out of every five EVs sold in the UK. Tax incentives, including the wildly popular salary sacrifice scheme, have made electric cars cheap enough for company car drivers to make the switch.

So much so that Britain’s two million-strong fleet of leased cars is now 37% electric with a massive 53% of new orders being EVs, according to the latest data from the British Vehicle and Leasing Association calculated from 2024 third-quarter figures.

Of that two million, just under a fifth are plug-in hybrid, but new orders are now below the total at 17%, demonstrating that electric is now becoming the drivetrain of choice to reduce company car tax bills.

The other big driver of EV fleet sales has been Motability, the charity that supplies cars to disabled people in return for their weekly mobility allowance. Motability Operations had 70,000 EVs in its fleet up to the end of last year, with orders for 13,000 more. However, after running hot last year and accounting for around a fifth of all car sales, Motability has backed off in 2025 – for example, cutting its New Vehicle Payment bonus of £750 to new customers.

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MG reported that Motability orders were down 20% this year, with the company directing its energy back in retail sales to make up that shortfall.

Private buyers have largely been locked out of EV incentives, but fierce discounting in the first three months paired with greater model choice has tipped the balance.

Car makers need to hit their ZEV mandate target of 28% EVs (adjusted to around 22% with flexibilities, according to market analyst NewAutomotive) and those furthest away from the target are cutting prices.

Discounts on EVs rose from 9.9% of the car’s total in the last three months of 2024 to 10.2% in the first quarter of this year, according to data from the What Car? Target Price team, translating to an average of £5999 per car.

Mazda was the top EV discounter with a whopping 22% off per car, with Jeep at 18% and BMW at 14%, or £11,180 per car.

However, as we enter the second quarter, the mood music has changed, with discounts on petrol cars actually moving ahead of those for EVs at 9% versus 8.8% of the list price, according to figures from Pat Hoy, owner of PHA Autodata and long-term provider of What Car?’s Target Price.

Falling discounts on EVs may look concerning for those private customers looking for a cheaper electric car, but figures also show a decline in monthly PCP payments, from £614 on average five months ago to £540 now.

Hoy reckons this is because the current range of EVs available are pulling in more punters. “I think OEMs are sharpening their pencils and getting on with innovating ways to make EVs desirable at the transaction price point,” he said. He also noted a fall in ‘FUD’ (fear, uncertainty and doubt) hit pieces on electric cars in certain sections of the media.

Rising interest in retail buyers will gladden the hearts of the biggest leasing customers, who have been saddled with declining resale prices on electric cars that three years ago were forecast to be in hot demand.

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For example, Motability posted a £564 million loss last year following a £748m profit the year before as residuals fell across the board.

More cheap EVs are coming into the market now or later this year, including the £15,995 Leapmotor T03, the Renault 5 from £22,995 and the delayed models on the Stellantis Smart Car platform, including the electric Fiat Grande Panda from £20,975 and the Citroën ë-C3 from £22,095.

Those models will continue to further expand EV interest thanks to that key motivator, low monthly rates. Pigounakis said: “All retail customers want, and all dealers want, is the cheapest car.”