The prices of new petrol and electric vehicles could soon cost the same amount as drivers are supported by Labour’s Electric Car Grant and a wider choice of vehicles to switch to EVs.
New data shows that the upfront price difference between electric vehicles and equivalent cars with internal combustion engines has dropped from 33 per cent to just 19 per cent.
The latest research from Auto Trader also shows that two in five second-hand electric vehicles cost less than £20,000.
A further 37 new EVs have a recommended retail price under £30,000, while drivers are also backed by the new Electric Car Grant.
Labour’s incentive scheme helps drivers save either £1,500 or £3,750 on an eligible electric vehicle, with more than 30 models now part of the scheme.
Several popular models are already part of the scheme, including the electric Gen-E version of the UK’s best-selling car, the Ford Puma, as well as the Renault 5 and Toyota bZ4X.
Auto Trader also highlighted how many of the vehicles are already affordable for motorists, like the Renault 5, which retails from £21,495, and the £27,245 MG4.
Since the launch of the Grant, discounts on new electric cars with a price under £37,000 have risen quickly by two per cent, compared to petrol and diesel (0.5 per cent).
Electric vehicles are expected to reach price parity with petrol and diesel vehicles soon
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Erin Baker, editorial director at Auto Trader, said: “With more affordable models than ever before and a government grant to support people to make the switch, it’s no wonder that Auto Trader has seen the biggest spike in interest for EVs for three years.
“We expect that interest to translate into increased sales, supported by our campaign to make sure that drivers have the right information to make informed choices.”
The second-hand electric vehicle market has also seen a huge increase in interest. Since 2020, the number of enquiries for used EVs has risen from one in 50 to one in six.
Auto Trader reported that the Electric Car Grant has had no negative impact on the used car market, with drivers keen to switch, regardless of the age of the vehicle.
Reacting to electric vehicles nearing price parity with petrol and diesel, Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), said EVs were no longer “playthings” for wealthier drivers.
He continued, saying: “They are already delivering savings of hundreds, even thousands, of pounds a year in ownership costs to households across the country – savings that are just going to get better and better as upfront sticker prices continue to fall.
“While price parity approaches for new EVs, it has already been reached on the second-hand market – where most of us buy our cars.”
Similarly, Vicky Edmonds, CEO of EVA England, said affordable electric cars were crucial to helping millions of Britons switch away from polluting petrol and diesel vehicles.
“While cost is only one factor, greater affordability and an increasing range of options are hugely important for drivers who are, in increasing numbers, seeing EVs as the one that serves their everyday needs,” she added.
Eligible EVs for the £3,750 Electric Car Grant
- Ford Puma Gen-E
- Ford e-Tourneo Courier
Eligible EVs for the £1,500 Electric Car Grant
- Citroen e-Berlingo
- Citroen e-C3 and e-C3 Aircross
- Citroen e-C4 and e-C4 X
- Citroen e-C5 Aircross
- Citroen e-SpaceTourer
- Cupra Born
- DS DS3
- DS Nº4
- Nissan Ariya
- Nissan Micra
- Peugeot e-208
- Peugeot e-308
- Peugeot e-408
- Peugeot e-2008
- Peugeot e-Rifter
- Peugeot e-Traveller
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Renault 4
- Renault 5
- Skoda Elroq
- Skoda Enyaq
- Toyota bZ4X
- Toyota Proace City Verso
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Vauxhall Vivaro Life Electric
- Volkswagen ID.3