‘Another barrier falls’ as EVs now cheaper than petrol cars
New electric cars now cost less on average than a new petrol car, according to data from Autotrader.
The average price of a brand-new electric car is now £42,620, compared with £43,405 for a brand-new petrol car.
This marks the first time that passenger EVs have been cheaper than petrol cars and the shift has been attributed to government incentives and dealer discounts.
EV advocates say the latest news marks the end of one of the biggest barriers to EV adoption – higher up-front purchase costs.
Cost argument adds up
The figures from the UK’s leading online car marketplace show that discounting on EVs has actually softened slightly between March and April. The average discount has fallen from a record 12.8% in March to 11.7% in April. That puts EV discounts just slightly ahead of the wider market, where average savings are 10%.
Autotrader said more competitive pricing, government grants and the launch of the new ‘26’ registration plate have helped push up interest in new cars by around 20% since the start of April. It also reported rising searches for EVs amid ongoing petrol price volatility.
Bex Kennett, performance director at Autotrader, commented: “The electric car market is becoming increasingly competitive, and despite the challenges created by the ZEV mandate, manufacturers and retailers have worked hard to improve both the supply and affordability of new electric vehicles.
“Support such as the Government’s Electric Car Grant, alongside historically high levels of discounting earlier this year, has brought EV prices to a point where they are now, on average, cheaper than petrol cars. At the same time, broader geopolitical uncertainty — including the situation in Iran — has pushed fuel costs and energy security back to the front of buyers’ minds, driving a noticeable uptick in interest in both new and used electric cars.”
Milestone for the EV transition
Gurjeet Grewal, CEO of Octopus Electric Vehicles, said the news was a watershed moment for the EV market. He noted: “‘Milestone’ gets thrown around a lot, but this really is one.
“They’ve long been cheaper to run, and now they’re cheaper to buy too. Add in growing competition and more choice, and it’s clear the direction of travels.”
Vicky Edmonds, CEO of drivers’ group EVA England, said the news was a “significant turning point for drivers” and a breakthrough on affordability. However, she called for more support for charging infrastructure, lower-income households and the used market.
Vicky Read, chief executive of ChargeUK, echoed Edmond’s comments, saying: “Another barrier to EV adoption just fell. On the vehicle side, up-front cost for consumers has been well addressed through the government grant and dropping prices. On the charging side, if you can charge at home, it has long made more financial sense to go electric. The final hurdle is public charging.
“As petrol prices are soaring due to global volatility, the government has an opportunity to bring down public EV charging prices which have been pushed upwards by policy. Making lower cost, cleaner driving affordable for everyone including the third of households without driveways, unleashing more EV sales to meet the automakers’ quotas.”
The news comes shortly after data revealed that used EV prices have also hit parity with petrol equivalents, marking another major milestone in EV affordability and accessibility.
