Autotrader alongside ChargeUK, the Society of Motor Manufacturers and Traders (SMMT) and others have reported the ‘premium’ for electric vehicle (EV) prices over petrol and diesel has fallen to a record low.
A key findings from the joint industry “The Facts” initiative discovered the shrinking of upfront price difference between EVs and ICE equivalents to just 19%, compared to 33% a year ago.
The initiative gathers user-friendly, simplified facts that offer a balanced and data-backed view of the reality of owning and driving electric cars to dispel popular misconceptions.
Other updates include public the number of public charge points around the UK increasing to 85,163, with ultra rapid chargers now 17,132 up from 16,259. In addition there are 37 new EVs with RRP under £30,000, compared to 33 in June.
The announcement marks the first time the upfront price difference between new electric and equivalent internal combustion engine models has fallen to below 20%.
This is in part driven by price changes made by manufacturers in order to qualify for the government’s Electric Car Grant (ECG), which is only available on models £37,000 and under – and also reflects the bigger choice of models available on the market.
Since the launch of the ECG, discounts on new EVs priced £37,000 and below have risen quickly, (+2%) compared to petrol and diesel (+0.5%). The grant has grown enquiries at the affordable end of the market too, pushing many models under £37k into the top ten most popular cars on Autotrader, and encouraged manufacturers whose models aren’t eligible for the ECG to offer more incentives.
Additionally, the used electric market is in solid health with pricing in line with the broader used car market and one in six enquiries now for an electric car, compared to just 2% in 2020.
Parliamentary Under Secretary of State for Transport, Keir Mathers said:
“Owning an electric vehicle has never been more affordable thanks to our drive to make EVs cheaper and more accessible. With our Electric Car Grant offering discounts of up to £3,750 and over 85,000 public chargers now in place across the UK – with one added on average every 31 minutes – we’re bringing down costs and boosting the convenience of owning and EV, helping more families make the switch and save as they do.”
Erin Baker, Editorial Director at Autotrader, said:
“With more affordable models than ever before and a government grant to support people to make the switch, it’s no wonder that Autotrader 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. Whilst electric cars might not be right for all consumers right now, if you can charge off-street, it could be a great option – and we hope The Facts help provide confidence for those that are considering going electric.”
Nick Connor, CEO of the IMI said:
“At the IMI, we believe that easy access to trusted information is essential to help motorists start their electric journey, alongside an automotive workforce with the accredited skills to service, maintain and repair the growing EV parc. We are, therefore, delighted to be joining this initiative to help cut through the noise with clear, evidence-based facts that will give consumers and businesses the confidence to embrace electric vehicles. Collaboration across the sector is vital, and we’re proud to be playing our part.”
Image courtesy of “The Facts” initiative
