The average price of a recent electric car in the UK has dropped below that of a petrol model for the first time, according to Autotrader data, marking a symbolic shift in the country’s move away from fossil fuels.
The figure stands at £42,620 for a new electric vehicle, compared to £43,405 for a petrol equivalent – a difference of £785 in favour of electric. This change follows sustained pressure on manufacturers to meet the UK’s zero emission vehicle mandate, combined with the impact of a government grant offering up to £3,750 off eligible models and an influx of lower-priced competitors from China.
Bex Kennett, head of new car at Autotrader, said carmakers had been forced into “historically high levels of discounting earlier this year” to boost electric sales, a trend amplified by rising fuel prices linked to the war in Iran. “The electric car market is becoming increasingly competitive,” she noted, adding that improved supply and affordability are now aligning to make EVs a more viable option for buyers.
Gurjeet Grewal of Octopus Electric Vehicles described the milestone as genuine, stating that for the first time, electric cars are cheaper to buy as well as to run. “They’ve long been cheaper to run, and now they’re cheaper to buy, too. Add in growing competition and more choice, and it’s clear the direction of travel: electric is the obvious option for drivers.”
Meanwhile, shifting consumer priorities are reinforcing the trend. Research from Electrify Research shows that financial benefits are on course to surpass environmental concerns as the main reason homeowners consider battery electric vehicles, with the crossover expected by early 2027. Environmental appeal has fallen from 60% to 46% since tracking began, whereas financial motivations have risen from 26% to 43%.
Ben Nelmes of New AutoMotive said more motorists are recognising the savings potential, noting that the amount drivers can save by going electric has increased by over 20% in the last month due to global fuel volatility. “What is good for the planet is good for your pocket,” he said, adding that with better-priced models now available, “there has never been a better time to get an electric car.”
Electrifying.com found that 73% of non-EV drivers visiting its site are now considering an electric car due to oil price volatility, with used models like the Nissan Leaf available from £1,400 and the Tesla Model 3 from under £10,000. However, Ginny Buckley, CEO of Electrifying.com, warned that access to home charging remains a key inequality, noting that those without it cannot benefit from the “pennies per mile” charging costs enjoyed by others.
The Energy and Climate Intelligence Unit highlighted the broader implications, stating that with EVs now cheaper to buy and running costs already low, the UK has a chance to reduce its dependence on volatile oil markets. Colin Walker, its head of transport, pointed out that prior to the Middle East conflict, EVs offered annual savings of over £870 – a figure now exceeding £1,000 – and that accelerating the shift to renewably powered vehicles would strengthen energy independence.
He likewise cautioned that industry lobbying to weaken the zero emission vehicle mandate, while having driven down prices through increased competition, would ultimately abandon drivers with higher bills and undermine the UK’s energy security if pursued.
Why have electric car prices fallen below petrol models in the UK?
Prices have dropped due to a combination of the government’s electric car grant offering up to £3,750 off eligible models, pressure on manufacturers to meet the zero emission vehicle mandate, and increased competition from lower-priced Chinese electric vehicles entering the market.
Are electric cars now cheaper to run as well as to buy?
Yes, electric cars have long had lower running costs than petrol models, and with the average upfront price now £785 cheaper, they are cheaper both to buy and to operate, according to Autotrader and industry analysts.
What barriers still exist to wider electric vehicle adoption in the UK?
Access to home charging remains a significant inequality, as those without it cannot benefit from low-cost charging, and industry efforts to weaken the zero emission vehicle mandate could ultimately increase long-term costs for drivers and reduce energy independence.
