EVs "cheaper to buy" than petrol models for first time
New electric vehicles (EVs) are cheaper to buy on average than petrol models for the first time, according to data from Autotrader.Based on prices after discounts, the average price of a new EV has now undercut a petrol car across the retail market, driven by UK Government grants and manufacturer discounting.The impact of this pricing trend has become more pronounced in April, with the average new electric car priced at £42,620 compared to £43,405 for a new petrol model — a £785 difference in favour of electric.After reaching a record high in March (12.8%), average discounts on new EVs eased slightly to 11.7% in April so far following the key plate‑change month.While lower than last month’s peak, discounting on electric cars remains historically high and continues to help reverse the price gap with petrol models, Autotrader said.Autotrader has also reported that buyers looking at new cars on the marketplace have risen around 20% in April, with improved affordability, grant support and the arrival of 26-plate vehicles contributing to increased buyer engagement.As demand continues to build, retailers are responding by increasing the volume of new cars advertised on Autotrader, which is up 13% in April so far based on the same period last year.Bex Kennett, Head of New Car at Autotrader, said: “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 on our marketplace.“While past spikes in EVs haven’t always translated into sustained purchasing, this combination of improved affordability and shifting attitudes towards the cars, presents a real opportunity to accelerate the switch to electric.”Vicky Edmonds, CEO of EVA England, says:“This is a significant turning point for drivers, and a sign of how far the EV market has come. Upfront cost is one of the biggest barriers, so reaching price parity with petrol is a major breakthrough. However, price alone will not drive mass adoption. Drivers need confidence that charging is reliable, affordable and easy to access, along with targeted support for lower and middle income households now looking to take advantage of the cheaper running costs of electric cars, and stronger support for the used EV market. If those challenges are addressed, many more drivers will be able to make the switch.”Vicky Read, chief executive, ChargeUK said: “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.” Gurjeet Grewal, CEO of Octopus Electric Vehicles, comments: “‘Milestone’ gets thrown around a lot, but this really is one. For the first time, EVs are cheaper than petrol cars on upfront cost – removing one of the biggest barriers to switching.“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 travel: electric is the obvious option for drivers.”Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit (ECIU), said: “This news comes at a moment when interest in EVs is surging as drivers look to move on from paying the rocketing pump prices resulting from President Trump’s war in the Middle East. Prior to the conflict, EVs already offered annual savings of over £870 – a figure that has jumped to over £1000 since the conflict started. [2]“This is a major moment in the shift to net zero emissions as clean technology becomes the cheap technology, cutting bills and carbon emissions. With EVs now cheaper to buy than a regular petrol car, and interest in them soaring, the Government has an opportunity to reduce the UK’s dependence on volatile oil markets by accelerating its transition to vehicles that are increasingly powered by electricity generated in British wind and solar farms. Given it’s an international market, more drilling for oil in the North Sea has no real impact on the price paid at the pump.“There has been strong lobbying from parts of the industry to weaken the ZEV mandate policy, which has increased competition between manufacturers and helped drive down prices, but it’s clear this would leave drivers paying higher bills and jeopardise the UK’s energy independence.”
