DEMAND FOR ELECTRIC vehicles (EVs) is up 35% year on year, data from website DoneDeal has found.

DoneDeal also found that for the first time in 2023, an electric vehicle – specifically the Volkswagen ID.4 – is the most popular new car among all car types.

The ID.4 had previously claimed the top spot between September and December of last year before being overtaken again in January by a diesel car, the Peugeot 3008.

The Volkswagen ID.5 is the only other EV represented in the top 10 most in-demand new cars in 2023. 

This demand for EVs has led to the average price for a brand new electric car reaching €64,755 – a 13% increase compared to May of last year.

The average price for nearly new EVs (1- to 4-year-old models) is €42,661 – a 10% increase compared to 2022. 

The lack of supply coupled with the increase in demand, partly due to people purchasing cars prior to the reduction of the EV grant in July, led to the price increases, DoneDeal’s report noted.

The report also stated:

“It has been well documented that Tesla have reduced their prices worldwide, but this appears to be an outlier as the rest of the market haven’t followed suit just yet.

“Consequently, the overall trend indicates a rise in prices for EVs.

“It’s expected that as the market develops, economies of scale and improved battery technologies should improve the pricing situation, but that effect isn’t likely to be felt until the close of this decade.”

The report concluded that the increased demand for EVs and the fact that the Volkswagen ID.4 is the most popular new car in Ireland shows that EVs will become more common in Ireland in the coming years.

“These findings support the notion that the limitation lies with the supply shortage and subsequent inflated prices rather than the reluctance of Irish car buyers to embrace electrification.”

Note: Journal Media Ltd has shareholders in common with Done Deal Ltd.