Desperate carmakers slash prices of new cars by thousands in bid to avoid £15,000 fine

Firms have slashed costs to meet ZEV mandate rules (Image: Getty)

Car manufacturers are offering major discounts on new electric models from brands such as Citroen, MG and Peugeot as they come under pressure to meet new net zero laws introduced for 2024.

Firms are slashing fees in order to beat electric car sales targets mandated by the new ZEV (Zero Emissions Vehicle) Mandate legislation.

The rule makes sure that a certain amount of firms' annual sales are made up of zero-emission models such as EVs and hybrid machines.

The target currently stands at 22% of all output with heavy fines in place for manufacturers not meeting their quotas. 

Companies stand to be charged a staggering £15,000 for every vehicle under the target in what could be a massive financial blow for brands.

DS3 Crossback prices are down by over a third (Image: Getty)

Concerns have led to wild price reductions on expensive electric vehicles before the end of the year in a bid to encourage drivers to make the transition.

Analysis shows the average discount was around 12.4% across the board which would make it one of the steepest discounts ever applied to the industry.

DS has cut the cost of its DS3 Crossback machine by over a third with prospective owners likely to enjoy over £13,000 off.

According to data from the leading new and used car marketplace AutoTrader, models are being sold for just £24,345 despite average RRP rates at £37,862.

The MG5 is also down 34.2 percent with prices cit from £33,151 to £21,813 in November.

The MGZS is next with prices dropping from £33,243 to £23,237 in a 30.1% decline with just two months of the year remaining.

The DS3 was fourth on the list with rates dropping to £28,883 from their previous highs of £41,320.

Some Citroen electric cars were down by well over 23% while there have also been sizable reductions on Peugeot and Jaguar models.

The popular I-Pace has dropped over 20% with cars now available for just £62,038, down from the previous £78,331 price tag.

Thousands have been cut off the Jaguar-I Pace (Image: Getty)

However, the ZEV mandate is set to tighten every year with manufacturers required to ensure 28% of sales meet the threshold by 2025.

AutoTrader spokesman Ian Plummer has warned the rule could be “very painful” for manufacturers.

He stressed many firms would likely be “selling EVs at a loss” but admitted the move would likely see a boost in the number of motorists looking into EVs for their next purchase.

Ian explained: “That sort of discount finally makes it possible for the consumer to make a rational decision to buy an EV, rather than base it on emotional reasons such as environmental factors.”