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  • Company car tax is doing this already with 0% BiK on EVs this year rising to 1% in April.

    Which is another reason for manufacturers to focus on more expensive cars. It’s a generalisation but £50k+ company cars tend to be driven by people paying 40% tax. £20k EVs driven by employees on 20% tax cost a lot less in tax than £60k EVs driven by 40% taxpayers

  • I’m not sure that the tax argument holds up when it makes no odds to the manufacturer what tax the customer pays.
    More likely is that with a high base platform cost, adding a ‘premium’ fit out enables them to increase the markup multiplier.

    £25k platform + £5k fit + £5k profit
    Vs
    £25k platform + £15k fit + £20k profit

    Bearing in mind that £35k is a lot of money for a small car, whereas £60k is still within the ICE equivalent range.

    If someone could bang out a basic EV for £15-20k they wouldn’t be able to make them fast enough to keep up.

    Then there’s the prestige/aspirational angle - same reason you have adverts for Jaguar during youth programming. No one watching can afford one now but years later when they can, the brand still has that cachet.

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