Electric vehicles now cheaper than petrol cars on average

For the first time, new electric vehicles (EVs) are now, on average, cheaper to buy than petrol models, new analysis shows.

Based on advertised prices after discounts, the average new electric car is now priced at £42,620, compared to £43,405 for a new petrol model – a £785 difference in favour of electric – according to Autotrader.

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The price reduction has been driven by Government grants and sustained manufacturer discounting.

The Society of Motor Manufacturers and Traders (SMMT) has said that alongside billions invested in both the technology and product to deliver a choice of more than 160 EV models, manufacturers are relying heavily on discounting to stimulate demand. 

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.

Bex Kennett, head of new car at Autotrader, said: “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.”

A similar pattern is evident across the wider new car market. The average discount across all fuel types softened to 10% in April so far, although this remains well above the level recorded a year ago (8.7%), highlighting continued pricing competition among manufacturers.

As prices become more competitive, consumer interest in new cars has remained strong. Autotrader reports that buyers looking at new cars on the marketplace have risen circa 20% so far in April, with improved affordability, government grant support and the arrival of ‘26 plate’ vehicles all contributing to increased buyer engagement.

MG leads the electric rankings

Against this backdrop of improving affordability and strong demand, MG reclaimed its position as the most popular new electric car brand on Autotrader in April, accounting for 11.7% of all new electric car enquiries so far, ahead of Renault (7.5%) and Kia (5.9%).

Source: Autotrader 

Most in-demand new car electric models

At a model level, the Renault 5 E‑Tech Electric emerged as the most in‑demand electric car among consumers, accounting for 6.4% of all enquiries.

It was almost double the share of its nearest rivals, finishing ahead of the Jaecoo 5 (3.4%) and MG S5 (3.1%).

Source: Autotrader 

Chinese-made vehicles share of top 10 models

Across the wider new car market (all fuel types), Volkswagen’s Golf (3.4%) continued its strong run, topping the rankings for the third consecutive month, ahead of the Jaecoo 7 (3.1%) and the Land Rover Defender 110 (2.4%).

Chinese models also continue to make notable headway among consumers with the Jaecoo 7, MG S9, Omoda 5, Chery Tiggo and MG HS all featuring in the top ten most in-demand models.

The petrol and plug-in-hybrid Jaecoo 7’s prominence following its milestone performance in March, when it became the most in-demand new car of any fuel type, with strong momentum carrying into April as brands benefit from increased visibility in front of engaged car buyers. 

At a brand level across all fuel types, BMW has emerged as the ‘hottest’ brand in April so far (9.9%), achieving a small lead ahead of MG (8.7%) and Land Rover (8.2%).