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Fiat Slashes EV Prices Amidst Slowing Demand
5 Jan
Summary
- Fiat and Abarth reduced EV prices by up to 16% to boost sales.
- Fiat 500e price cut by over £4,000 to £20,995.
- Slowing EV demand linked to 2028 pay-per-mile tax fears.
Italian car manufacturer Fiat, along with its performance brand Abarth, has introduced substantial price cuts across its electric vehicle lineup. These reductions, reaching up to 16%, are a direct response to declining consumer interest in EVs, which saw sales growth hit a 24-month low late last year. The Fiat 500e benefits from a significant saving of over £4,000, bringing its price down to £20,995, making it competitive with hybrid models.
The slowdown in EV demand is attributed to several factors, including buyer apprehension over the government's planned pay-per-mile tax for electric cars starting in 2028. Furthermore, Fiat's current EV models do not qualify for the government's Electric Car Grant, which subsidizes competitors. The company was forced to suspend production of the 500e for seven weeks in 2024 due to unsold stock, highlighting the market challenges.
Fiat aims to make electrified driving more accessible and straightforward with these new pricing strategies. The manufacturer hopes that offering transparent and attractive pricing will incentivize customers to choose electric vehicles, despite broader market headwinds and upcoming regulatory changes. This proactive pricing adjustment seeks to bolster sales and market share in a challenging economic climate.
