Why car companies are doing deals on electric cars

Car companies have slashed thousands from the retail prices of electric cars as shiny new metal looms on the horizon and overseas demand starts to stall.

Car brands have slashed the prices of some popular EVs amid concerns overseas that the initial interest in the vehicles is starting to wane.

Electric vehicles sales more than doubled in Australia last year, but queues to get hold of a new one are shrinking as more models come online.

Leading electric car brand BYD is discounting its Atto 3 SUV by more than $2000 to clear last year’s stock, while rival GWM recently cut the price of its Ora hatchback by $4000.

The discounting comes as car makers overseas reassess their EV production schedules due to a softening of demand.

Ford last week announced it would temporarily cut one of three shifts at the Michigan Rouge plant, which builds the F150 Lightning pick-up truck.

BYD’s cashback offer on 2023 versions of the Atto 3 is significant because it was the third-best selling EV in the country last year.

The BYD Atto 3 has been discounted by more than $2000.

It is normally priced from about $50,600 drive-away in NSW, but BYD is offering a $2023 incentive to help the brand clear old stock.

The deal does not apply to BYD’s latest models, the smaller Dolphin hatchback or larger BYD Seal sedan.

BYD’s price cut comes after rival brand GWM cut about $4000 from the cost of its Ora electric car, reducing its asking price to about $37,000 drive-away.

GWM’s Ora is the cheapest EV on sale.

That discount made the bug-eyed Ora the cheapest electric car in Australia.

More established brands have also slashed the cost of electric cars.

Hyundai cut the price of its Ioniq 6 by $5000 to $10,000 in October to make room for upgraded 2024 model year stock, while Ford reduced the price of the Mustang Mach-E by up to $7000 to attract new customers.

Ford addressed pricing concerns for the Mustang Mach-E.

Kia has not cut the price of its range-topping EV6 GT performance car, but is giving away seven years of free servicing (worth $2309) plus a free home electric car charger (worth $3880) for a limited time.

Some of the biggest discounts are on expensive models from the top end of town.

BMW is offering a $5000 deposit contribution for i4 or iX electric cars bought through finance.

Better still, Mercedes is doing free chargers with a $1000 contribution toward installation in addition to “significant savings”.

How significant?

Mercedes-AMG EQS 53 sedans represent something of a bargain.

Try about $88,000 slashed from the range-topping Mercedes AMG EQS 53.

Models in stock start from less than $280,000 drive-away, which is a fair bit less than the car’s official launch price of $328,400 plus on-roads (about $350,000 drive-away), before you consider that models in stock have optional extras including ceramic brakes ($9990) and the 560kW AMG Dynamic Plus upgrade ($7690).

That can’t be welcome news to folks who paid full retail prices.

Hertz is reducing its stock of Tesla electric cars.

Second-hand examples with 2000 kilometres on the clock can be found in the classifieds for a little more than $190,000 drive-away, which is close to $10,000 per month in depreciation.

Resale values for cheaper electric cars may be hurt by Hertz’ decision to dump Tesla rental cars onto the second-hand market.

The rental car giant told shareholders that EV running and repair costs were higher than expected, prompting it to focus on fossil fuel-powered cars in the short term.

Originally published as Why car companies are doing deals on electric cars