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    Fiat slashes EV prices by as much as £4,000 to boost dwindling sales

    1 month ago

    By ROB HULL, MOTORING EDITOR A popular car maker has rung in the new year by slashing the price of its entire electric vehicle range in an effort to encourage sales amid slowing EV demand. Italian giant Fiat and its sister brand Abarth has announced 'major price reductions' across its EV line-up, which sees up to 16 per cent slashed from some models. It comes as latest industry data showed that EV sales had slowed to a 24-month low towards the end of last year, with buyers swerving new electric models in response to Chancellor Rachel Reeves' pay-per-mile tax on battery-powered cars from 2028.  Fiat too currently has no EVs that qualify for the Government's £2billion-backed Electric Car Grant (ECG), which subsidises the price of some of its biggest competitors by between £1,500 and £3,750.  The Italian manufacturer's largest discount is on its ageing 500e city car, which has been cut from just over £25,000 to only £20,995 - more than a £4,000 saving. The price of the larger Fiat 600e SUV has also been reduced by £3,285 to £26,750, while sporty Abarth cars have been trimmed by between £1,890 and £2,990 to make them more appealing to customers. Fiat has slashed the price of its electric car line-up as it enters 2026 faced with shrinking demand for EVs The 500e's lowered starting price means it will cost the same as the 500 Hybrid coming later this year, and will match the new Grande Panda, which is due to arrive in the UK in the summer. The reduction to the Fiat 600e also means it has price parity with the petrol-hybrid 600, which the car firm says 'provides customers with a clear incentive to consider fully electric'. Fiat 500e: £4,040 saving (£25,035 to £20,995) Fiat 600e: £3,285 saving (£30,035 to £26,750) Abarth 500e: £1,990 saving (£29,985 to £27,995) Abarth 500e Turismo: £2,990 saving (£33,985 to £30,995) Abarth 600e: £2,990 saving (£36,985 to £33,995) Abarth 600e Scorpionissima: £1,890 saving (£39,885 to £37,995) Fiat is one of a number of European car firms that has experienced a nosedive in demand for its electric cars. In 2024, it was forced to temporarily suspend outputs of the 500e at the Mirafiori factory in Turin for seven weeks due to having a surplus of the EVs it was unable to sell. At the time, Stellantis said in a statement: 'The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric (car) market by all producers, particularly the European ones.' Announcing the price cuts at the weekend, Fiat UK marketing director Victoria Hatfield said: 'Fiat is passionately committed to making electrified driving more accessible to customers, and with this new pricing structure for our fully electric line-up of vehicles we are starting the new year by making this transition more affordable and straightforward for drivers. 'There are no complications with Fiat if you want a great value electric vehicle.  'With our transparent pricing policies drivers can simply choose from our range of award-winning models to enjoy Italian style and affordable electric motoring.' The Italian manufacturer's largest discount is on its ageing 500e city car, which has been cut from just over £25,000 to only £20,995 - more than a £4,000 saving Fiat is one of a number of European car firms that has experienced a nosedive in demand for its electric cars. In 2024, it was forced to temporarily suspend outputs of the 500eat the Mirafiori factory in Turin for seven weeks due to having a surplus of stock The price of the larger Fiat 600e SUV has also been reduced by £3,285 to £26,750 in an effort to make its more attractive to customers Fiat is one of numerous car brands that have failed - so far - to qualify for the Government's ECG, which launched in the summer. Having originally been backed by £650million in funding to run until 2028/29, the Chancellor in her Autumn Budget confirmed a further £1.3billion investment to retain the scheme until the end of the decade. The grant is only issued to models priced up to £37,000 that meet the Government's strict sustainability criteria, which takes into account the emissions produced during the battery's manufacturing, the vehicle's assembly, and the carbon intensity of the electric grids in the countries where the car is made.  To date, no Chinese electric cars have been eligible for the scheme based on the sustainability restrictions. However, Fiat too is yet to be confirmed for the ECG, which has forced it to impose its own price reductions in order to remain competitive against rivals. It also comes as vehicle registration data published by the Society of Motor Manufacturers and Traders (SMMT) shows that EV sales growth in November was the lowest in almost two years. Some 39,965 fully electric cars were sold during the eleventh month of last year, up just 3.6 per cent on the 38,581 entering the road in November 2024.  The deceleration in appetite for new battery cars was triggered by reports emerging ahead of the Budget last month that Ms Reeves was due to unveil a plan to tax EVs by the mile. Electric vehicle market share hit 26.4% in November, only just ahead of the 25.1% achieved in the same month in 2024 In November, Rachel Reeves announce the eVED pay-per-mile EV tax for 2028. It will see EV owners pay 3p per mile, which industry bodies have warned will stunt demand for new battery cars Later that month she confirmed these reports with the announced electric Vehicle Excise Duty (eVED) pay-per-mile scheme in the Autumn Budget - which will see EV drivers pay 3p per mile - to help plug the Exchequer's fiscal hole left by declining traditional fuel duties. The mileage-based road pricing measure comes in from April 2028 but has been slammed as a 'confusing' measure to launch at a time when the Government is desperate for drivers to make the switch. Industry insiders have warned that the EV tax comes at the 'wrong time', especially with the ban on sales of new petrol and diesel cars in 2030. The EU's decision last month to water down its own 2035 ban has mounted pressure on Labour to reconsider its deadline and could also have an impact on consumer appetite for EVs. December's - and 2025's full year - car sales figures are due to be published tomorrow and is expected to show electric vehicle registrations slipping below mandated Government targets.
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