A major car company has slashed the price of its entire electric vehicle range following a drop in sales. The brand has confirmed "major price reductions" which will see up to 16% cut from the cost of some models.
Fiat and its sister brand Abarth has announced the price drops across its EV line-up following a drop in sales across the industry towards the end of 2025. Many buyers have decided to avoid new electric vehicles following the announcement of a new pay-per-mile road tax in the Autumn Budget. Chancellor Rachel Reeves confirmed that battery electric vehicles (BEVs) would be charged 3p per mile from April 2028 while plug-in hybrids (PHEVs) would be charged 1.5p. The measure aims to replace lost fuel duty revenue as drivers switch to electric.
However, the move has been met with mixed reactions with drivers concerned about increased costs. This has led to car manufacturers, such as Fiat, to drop the costs of its EVs.
As reported by the Daily Mail, Italian brand Fiat also has no EVs that qualify for the UK's Electric Car Grant (ECG). The government scheme provides a direct discount up to £3,750 on certain EVs.
Fiat's largest discount is on its ageing 500e city car which has been cut from £25,000 to £20,995. Meanwhile, the cost of the Fiat 600e SUV has been reduced by £3,285 to £26,50 and the Abarth cars have been dropped by up to £2,990.
Fiat is one of a number of European car manufacturers that has experienced a drop in demand for its EVs. In 2024, the firm suspended outputs of the 500e model for seven weeks as it had too many EVs it was unable to sell.
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."
