Fleets are starting to observe discounts on new electric vehicles
(Posted on 08/06/23)
Fleets are starting to observe discounts on new electric vehicle (EV) orders as a result of price cuts by Tesla, the entry of new Chinese manufacturers into the market, and increased production. Mike Potter, CEO of Drive Electric, noted that this indicates EVs are becoming a "normal part of the fleet market" and that the industry is returning to more traditional market conditions.
While the discounts are not significant, they signal a departure from the time when EVs were sold at list price. Tesla's actions, aimed at prompting price adjustments in the EV market, have influenced other manufacturers to assess their fleet sales and consider introducing incentives. The emergence of Chinese brands like MG and the anticipated arrival of BYD have also had an impact. MG, in particular, has established itself as a popular choice for entry-level EVs, and if other Chinese manufacturers like BYD enter the mid-market, they could pose a serious challenge to established players.
Additionally, fleet managers reported that lead times for EVs are starting to shorten, sometimes significantly. While this can be seen as positive, it presents its own challenges, as fleets may receive vehicles earlier than they actually need them.
The conference also discussed the advantages of solus (single-source) versus panel funding for fleets. Variances of £30-£100 per month on the same vehicle were observed depending on the leasing company, highlighting the importance of benchmarking and considering a panel of lenders for vehicle acquisition.
The Association of Fleet Professionals (AFP) conference, held at The British Motor Museum, focused on providing practical advice for fleets on various current issues. Panel discussions covered topics such as supply chain management, rising leasing costs, fleet optimization, and reimbursement for electric vehicle drivers. The aim was to equip delegates with actionable ideas to address the challenges they face in fleet management.
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