The RedBook Insider: GRAND SALE

Off the back of MG’s industry redefining drive away offer on the awarded MG4 battery electric vehicle (BEV), it’s a good time to take stock of the special offer activity currently shaping the market.

In recent months, it’s become clear that special offers are back in force, reminiscent of the more frequent pre-pandemic promotions. However, today's distinct shift, is the growing number of promotions featuring BEVs as OEMs push for broader consumer adoption.

As illustrated in the graph below, there has been a steady rise in the number of OEMs running special offers, with BEV deals emerging more prominently since 2022. Brands like MG, BYD, GWM, and others have been at the forefront of these aggressive pricing and promotional strategies, attempting to capture price-conscious consumers looking for an entry point into the EV market.

The MG4’s $30,990 offer, for example, makes it the most affordable mainstream BEV ever offered in Australia, but it’s far from the only deal making waves. Special offers are being seen across both BEVs and ICE vehicles, indicating that retailers are returning to more regular stock levels and competitive pricing to entice buyers.

With an increasing number of BEVs appearing in promotional offers, there’s a growing potential to accelerate the timeline for price parity between BEVs and traditional ICE vehicles, something that most pundits had set as far away as 2030.

However, the full effects of these offers on the broader market, particularly in terms of retained values for BEVs, remain to be seen. And will it really bring forward or even increase EV purchase intention for those teetering on the fence.

One thing is clear: the rise in special offers across the market is giving consumers more options after years of low supply and stubbornly high prices. Whether it’s BEVs or more traditional powertrains, this uptick in promotional activity signals a more competitive landscape ahead, and consumers are likely to benefit from these aggressive deals as automakers vie for their attention.