New electric cars cost less on average than petrol cars for the first time, according to Autotrader data.
The average price of a brand-new electric car is now £42,620, compared with £43,405 for a new petrol car. This shift comes from government incentives and dealer discounts working together to bring down EV prices.
This marks the first time passenger EVs have been cheaper than petrol cars.
EV advocates say the milestone eliminates one of the biggest barriers to electric car adoption – higher purchase costs that kept many buyers away from electric vehicles.
Discounting drives down prices
The figures show EV discounting has actually softened between March and April. Average discounts fell 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 competitive pricing, government grants and the launch of the new ’26’ registration plate have pushed up interest in new cars by around 20% since early April. The company also reported rising searches for EVs amid petrol price volatility.
Bex Kennett, performance director at Autotrader, said the electric car market is becoming increasingly competitive. Despite challenges from the ZEV mandate, manufacturers and retailers have worked to improve both 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,” Kennett said.
She noted that geopolitical uncertainty – including the situation in Iran – has pushed fuel costs and energy security back to buyers’ minds, driving interest in both new and used electric cars.
Industry calls it watershed moment
Gurjeet Grewal, CEO of Octopus Electric Vehicles, called the news a watershed moment for the EV market.
“‘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 travel.”
Vicky Edmonds, CEO of drivers’ group EVA England, said the news represents 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, said another barrier to EV adoption just fell. On the vehicle side, up-front costs have been addressed through government grants 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,” Read said.
She noted that as petrol prices soar due to global volatility, the government has an opportunity to bring down public EV charging prices. Making lower cost, cleaner driving affordable for everyone – including the third of households without driveways – could unleash more EV sales to meet automakers’ quotas.
The news comes shortly after data revealed used EV prices have also hit parity with petrol equivalents, marking another milestone in EV affordability and accessibility.
