Supply of electric vehicles is far outstripping demand across the domestic UK market, forcing manufacturers to cut prices in an effort to attract disinterested drivers.
The Evening Standard reports car dealership Vertu Motors revealed the lack of interest as traditionally powered vehicles maintain their stranglehold on the market for both new and used cars.
The dealership chain, with 189 sales and aftersales outlets including a number in the London commuter belt, said improved sales of new cars helped it ensure profit this year should be in line with expectations – with one exception.
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When it came to electric vehicles, it said supply had ballooned in a way that did not match demand, causing many manufacturers to cut prices to move stock.
“Recent increased supply of new electric vehicles appears to be exceeding retail demand, creating an imbalance in pipeline inventory coming into the key plate change month of September,” it said. “Manufacturers are reacting to this through the offer of discounted prices and supported finance rates to stimulate retail demand.
Tesla, which does not sell via dealerships, has been among the high-profile electric vehicle makers to have cut prices lately, with the cost of many of its models being slashed on multiple occasions while U.S. auto safety regulators have opened another investigation into safety problems with the vehicles.
Consumer reluctance to embrace EVs comes as drivers are warned the UK National Grid is not ready for any increase in demand from electric cars, according to the boss of service station operator Moto.
Ken McMeikan told the BBC in June there is a “major, major problem” getting enough power for electric chargers amid concerns the 2030 ban on new diesel and petrol sales will put pressure on infrastructure.
Electric vehicle range and the slowness of recharging – when it can be found – remain two of the chief concerns for wary consumers.
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McMeikan added it was fine setting targets for the number of electric vehicle charging points at motorway service stations. But he said there were serious questions about whether the grid had the power to supply them.
He told BBC Radio 4’s Today programme: “We have got a situation where you just couldn’t write the script – we have put sufficient chargers on four of our service areas, and the power required is not available. Electric vehicle drivers are turning up and there are chargers sitting there but no power.”