Dacia Spring pricing could place downward pressure on fleet EV pricing

Sub £15,000 pricing for the new Dacia Spring could place considerable downward pressure on electric vehicle (EV) prices for fleets, says FleetCheck.

Peter Golding, managing director at the fleet software specialist, pointed out that the price almost halves that of the cheapest EV currently on sale in the UK, and is not far from being the cheapest car overall.

He said: “This does feel like a potential watershed moment for EV pricing. While the Spring is too small and too limited for many fleet applications, it does show that a modern EV with a 137-mile range can be brought to market at a very attractive price. 

“The key here is that it immediately makes every other EV look like poor value and could lead to a domino effect. Suddenly, 200-mile range superminis at around £30,000 appear overpriced and they will probably need to readjust. This could impact on the next class of car up and so on, having a domino effect.

“It is certainly possible that, by the end of the year, we will see lower EV pricing overall as a partial result of the arrival of the Spring.”

Peter added that there was also a potential place for the Spring on some fleets, a role made possible by its pricing.

“Larger fleets could operate a couple of Springs as potential pool cars for local journeys while they might also find a place in, for example, fleets that undertake home visits on a local basis such as health and social care providers.

“It’s even possible that the low cost will mean fleets that have so far held out against electrification acquire buy a Spring just to dip a toe in the water. The purchase price and potential lease rates are low enough that this represents a very limited financial risk.

“Importantly, residual values are likely to be strong. This is exactly the kind of EV that a certain type of used car buyers will want to buy in 3-4 years. Demand is likely to be considerable.”