Data published by UK automotive marketplace Autotrader has revealed that the upfront cost of new electric vehicles (EVs) are now cheaper than petrol models, just as petrol and diesel prices add to the running costs of internal combustion engine (ICE) cars.
Autotrader, which bills itself as the UK’s most visited automotive marketplace, published data late last week based on prices (after discounts) advertised on its website.
The results showed that, driven by government grants and sustained manufacturer discounting, EVs have now undercut the cost of petrol cars across the retail market, with the average new electric car now priced at £42,620 ($A80,452) compared with £43,405 ($A81,934) for a new petrol model — a £785 difference in favour of electric.
“The electric car market is becoming increasingly competitive, and despite the challenges created by the ZEV mandate, manufacturers and retailers have worked hard to improve both the supply and affordability of new electric vehicles,” said Bex Kennett, head of New Car Performance at Autotrader UK.
“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.”
He noted that price hikes – driven by the war in the Middle East – have pushed fuel costs and energy security back to the front of buyers’ minds, and have driven a noticeable uptick in interest in both new and used electric cars.
“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,” he said.
The average discount on a new EV in the UK have eased slightly in April, down to 11.7 per cent from 12.8 per cent the month earlier, though discounting on EVs still remains historically high and is continuing to reverse the price gap with petrol models.
Interestingly, average discounting across all fuel types has reached 10 per cent in April, well above the level recorded a year earlier, highlighting the continued pricing competition playing out among manufacturers.
The most popular new electric car brand on Autotrader so far in April is British marquee MG, which accounted for 11.7 per cent of all new electric car enquiries, ahead of Renault at 7.5 per cent and Kia at 5.9 per cent.
Chinese EV brands featured predominantly in the middle of the pack, with Leapmotor accounting for 6.1 per cent of all enquiries and BYD 5.4 per cent. European brands BMW, Vauxhall, Skoda, and Audi filled out the rest of the top 10 along with South Korean automaker Hyundai.
The most popular EV models on Autotrader so far in April are the Renault 5 E-Tech Electric and the Jaecoo 5, which also make it in to the top 10 of most in-demand new car models of all fuel types.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.