The average price of a new electric car in the UK has fallen below that of petrol vehicles for the first time, according to Autotrader. The car sales website reported that the average advertised price for a new battery electric vehicle (EV) was £42,620, compared to £43,405 for a new petrol model, making EVs £785 cheaper upfront.
This milestone is significant for Britain's transition away from fossil fuels, as higher upfront costs have long been a barrier for drivers considering switching to electric. Total running costs for EVs have been lower for some time, but the price parity on purchase is a new development.
UK battery electric car sales accounted for 22% of new car sales in the first quarter of the year, according to the Society of Motor Manufacturers and Traders. Prices have been pushed down by the electric car grant introduced last summer, offering up to £3,750 off some models, and by carmakers under pressure to meet zero emission vehicle (ZEV) mandate targets. An influx of Chinese competitors has also helped undercut traditional brands.
Bex Kennett, head of new car at Autotrader, said the market is becoming increasingly competitive, with manufacturers and retailers working to improve supply and affordability. She noted that carmakers had been forced into “historically high levels of discounting earlier this year” as they tried to boost electric sales. The war in Iran, which has caused a rise in petrol and diesel prices, has also aided efforts by increasing consumer interest in EVs.
Gurjeet Grewal, chief executive of Octopus Electric Vehicles, called the price milestone a genuine breakthrough, removing one of the biggest barriers to switching. However, challenges remain, including a patchy public charging network for households without driveways.
