Price parity: Cost of new EVs now lower than petrol cars in key right hand market

New data from UK automotive marketplace Autotrader reveals that the upfront cost of new electric vehicles (EVs) has fallen below that of petrol cars for the first time in a key right-hand drive market. The average price of a new electric car now stands at £42,620, compared to £43,405 for a petrol model, marking a £785 advantage in favour of EVs. This shift comes amid rising fuel prices, which have increased the running costs of internal combustion engine (ICE) vehicles and heightened consumer interest in electric alternatives. The price parity has been driven by a combination of government incentives, such as the Electric Car Grant, and sustained manufacturer discounting. Although discounts on new EVs slightly decreased in April to 11.7 per cent from 12.8 per cent the previous month, they remain historically high and continue to narrow the price gap with petrol cars. Overall discounting across all fuel types has also increased to 10 per cent in April, reflecting intense competition among manufacturers to attract buyers in a challenging market environment. Bex Kennett, head of New Car Performance at Autotrader UK, highlighted that the electric car market is becoming more competitive despite regulatory challenges like the Zero Emission Vehicle (ZEV) mandate. Kennett pointed out that recent geopolitical tensions, particularly in the Middle East, have pushed fuel costs and energy security back into the spotlight, encouraging more consumers to consider EVs. This combination of improved affordability and changing consumer attitudes presents a significant opportunity to accelerate the transition to electric vehicles. In terms of market preferences, British brand MG leads new electric car enquiries on Autotrader, accounting for 11.7 per cent, followed by Renault and Kia. Chinese manufacturers such as Leapmotor and BYD also feature strongly in the mid-tier of popularity, while European brands including BMW, Vauxhall, Skoda, and Audi, along with South Korean Hyundai, complete the top ten. The Renault 5 E-Tech Electric and the Jaecoo 5 have emerged as the most sought-after EV models, ranking among the top ten most in-demand new cars across all fuel types.