Cost parity between electric vehicles (EVs) and petrol and diesel models is far closer than what is being widely reported, according to industry experts.
They claim that misleading methodologies, such as headline comparisons based on the Recommended Retail Price (RRP), risk confusing consumers and delaying the transition to cleaner, more affordable transport.
The industry commentators point out that EVs are consistently richer in specification than their ICE equivalents – often faster, roomier, and packed with the latest technology as standard, like connectivity, advanced driver assistance and over-the-air updates. By contrast, many petrol models retain stripped-back “base trims” designed only to meet a price point.
Renault Austral vs. Scenic, VW Tiguan vs. ID.4, Golf vs. ID.3, Nissan Qashqai vs. Ariya, or Kia Sportage vs. EV5, all show that EV versions deliver more space, performance and features for similar or lower lifetime cost.
Crucially, battery costs – once the stumbling block for EV parity – are falling fast. In parts of China, packs are already being built well under $100/kWh, and global forecasts point to ~$60/kWh by 2026. At the same time, ICE costs are rising due to stricter emissions technology. The result: parity has effectively arrived in multiple segments today.
Dr Andy Palmer, Chairman Electric Vehicles UK, and Founder | CEO of Palmer Energy Technology Ltd, said:
“In 2008, when we developed the Nissan LEAF, price parity with ICE was only a dream. Batteries then cost $1,000/kWh. Today, at around $60/kWh, parity isn’t a hope – it’s reality. Add the lower running costs, and the economic case for EVs is now undeniable.”
Tanya Sinclair, CEO of Electric Vehicles UK, said:
“Across the automotive industry, we have a responsibility to communicate entirely and clearly about products and services.
“Comparing an entry-level ICE with an EV that includes thousands of pounds worth of advanced tech does not tell drivers the whole story about the vehicles they are comparing. It’s a distortion that does consumers no favours.
“EVs are the cutting edge of advanced technology and extremely good value for money in terms of space, performance and features. We should all be setting out their pound for pound merits at every possible opportunity.”
Steve Fowler, Founder of Carblah, commented:
“Recommended retail prices are yesterday’s news. What matters most to car buyers is what they pay each month and when it comes to finance deals, EVs have more incentives and lower rate finance making them more affordable than ever. The Independent EV Price Index has shown that PCP costs for a typical electric car have dropped by £55 a month or 10.8% compared with a year ago, while the average APR charged on an EV PCP finance deal is 3.5% versus 6.6% for a petrol or diesel model.”
Meanwhile, the headline that “EV discounts are unsustainable” narrative also falls flat: OEM discounting is a decades-long habit of the automotive trade, not something invented for EVs.
According to the experts, the only meaningful comparison is the transaction price, not the published RRP.
Pat Hoy, Founder Insider Car Deals:
“RRP is meaningless, no one actually pays it. Our transaction price data shows the real story: the median discount on petrol and diesel cars is already over 10% (£4,134), and on EVs it’s nearly 12% (£5,840). On PCP, the monthly gap between ICE and EVs has narrowed to just £32, and when you look at total cost of a PCP – including the balloon payment – ICE models still end up around 5% (£2,391) above RRP, while EVs come in almost 5% (£2,960) below. Insider Car Deals shows buyers what great EV deals should look like and gives the media the evidence they need to cut through the confusion and show that parity is already here.”
Image courtesy of Shutterstock.
