Motorists poised to ditch petrol vehicles as electric car prices drop due to Labour grants

This marks a major turning point for the car market, where electric vehicles have long been seen as the more expensive option.

Experts explained how a mix of Government support and heavy discounting by manufacturers has helped close the gap.

Car makers have been cutting prices on electric vehicles at record levels. Discounts reached 12.8 per cent in March, the highest on record. While this dropped slightly to 11.7 per cent in April, it remains well above normal levels.

Price competition was also strong across the wider car market. Average discounts across all types of vehicles were found to be around 10 per cent, compared to 8.7 per cent at the same time last year.

The Government‘s Electric Car Grant has also played a role, helping bring down the upfront cost of battery-powered vehicles. As a result, interest from buyers has surged.

Auto Trader explained that visits to its website for new cars have risen by around 20 per cent in April, aided by the launch of the new “26” number plate, which has also helped boost attention from buyers.

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Dealers have been responding by increasing supply, with the number of new cars listed for sale up 13 per cent compared to last year.

The growing demand has not just been limited to electric cars, with petrol and hybrid vehicles also seeing strong interest as the market becomes more competitive.

Meanwhile, Chinese car brands have been making a big impact in the UK. More than half of the 10 most popular new car models this month come from Chinese manufacturers.

The Jaecoo 7 was found to be the second most in-demand model, just behind the Volkswagen Golf. It follows a strong performance in March when it was found to be the most popular car overall.

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Other Chinese-built models gaining attention include the MG S9, Omoda 5, Chery Tiggo 8 and MG HS, which have been favoured for their affordable price point.

In the electric-only market, MG is currently the top brand, accounting for 11.7 per cent of all enquiries. Renault follows with 7.5 per cent, while Kia holds 5.9 per cent.

The Renault 5 E-Tech Electric is the single most popular electric model, making up 6.4 per cent of interest from buyers.

Bex Kennett, Performance Director at Auto Trader, said the shift is significant. “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,” she said.

She also pointed to global events influencing buyer behaviour. “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,” she said.

“This is driving a noticeable uptick in interest in both new and used electric cars on our marketplace.”

Experts stated the combination of lower prices and rising awareness could speed up the move towards electric vehicles in the UK.

Reacting to the news, Vicky Edmonds, CEO of EVA England, said: “This is a significant turning point for drivers, and a sign of how far the EV market has come. Upfront cost is one of the biggest barriers, so reaching price parity with petrol is a major breakthrough.

“However, price alone will not drive mass adoption. Drivers need confidence that charging is reliable, affordable and easy to access, along with targeted support for lower and middle-income households now looking to take advantage of the cheaper running costs of electric cars, and stronger support for the used EV market. If those challenges are addressed, many more drivers will be able to make the switch.”