For the first time, new electric cars are cheaper to purchase than their petrol counterparts. Data from Autotrader reveals the average battery-powered vehicle now costs £42,620, which is £785 less than the average new petrol model priced at £43,405.
This price shift is driven by the reintroduction of government grants and significant discounts from electric vehicle (EV) manufacturers. The government's £650m Electric Car Grant scheme offers subsidies of up to £3,750 on eligible models priced under £37,000, which are passed on as consumer discounts.
The price cuts come as carmakers strive to meet the Labour government's Zero-Emission Vehicle (ZEV) mandate, which requires 33% of new car sales to be electric this year. Currently, EVs account for 22% of the new car market, indicating a lag behind the target despite a year-on-year increase in registrations.
Industry experts note this milestone marks a "major moment" in the transition to net zero. However, challenges remain, including consumer concerns over rapid depreciation, insufficient charging infrastructure outside cities, and potential future taxes on EVs.