Autotrader has found that new electric vehicles are now, on average, cheaper to buy than petrol models for the first time, according to an analysis of advertised prices on its marketplace after discounts1. The average new electric car is priced at £42,620, compared with £43,405 for a new petrol model, a difference of £7851.
The finding was reported by Zemo Partnership on 18 April 20261. Energy UK, the trade association for the energy industry, also cites the Autotrader analysis in a briefing on the Zero Emission Vehicle (ZEV) Mandate, saying that "According to Autotrader, new EVs are now cheaper than petrol cars"2.
"In an historic development, Autotrader finds that new electric vehicles are now, on average, cheaper to buy than petrol models for the first time."
Energy UK's briefing sets the price shift against the ZEV Mandate, the policy requiring manufacturers to sell a rising share of zero-emission vehicles. Under current legislation, 80% of new car sales must be zero-emission by 2030, rising to 100% of new car and van sales by 20352. Energy UK states that the UK has reached two million electric cars on the road, with electric vehicles accounting for 23.4% of the new car market2. It adds that in 2024 all manufacturers avoided fines by meeting their obligations through a combination of vehicle sales and the scheme's flexible compliance mechanisms2.
Zemo Partnership reports further figures on running costs. Octopus EV says typical EV drivers can save close to £1,500 a year at current petrol and diesel prices, depending on where and when they recharge, and that a high mileage driver can save £3,000 or more in annual fuel costs when recharging on an overnight EV tariff1. Analysis by ChargeUK based on RAC Fuel Watch and Zapmap Price Index data found that drivers relying solely on public charging, currently averaging 54p per kWh, pay around 15p per mile for fuel, compared with 17p per mile for a typical petrol car and 17.5p for a diesel1.
Energy UK also notes that the Electric Car Grant of up to £3,750 closes the price gap further2. It states that EVs have cut UK emissions by more than seven million tonnes of carbon dioxide every year, and that domestic transport is the most polluting sector in the UK, with cars, taxis and light vans accounting for 70% of this2.
Why it matters for households
A lower average purchase price changes the arithmetic of a home's transport costs, which sit alongside heating and electricity in a household energy budget. The figures reported here cover advertised prices after discounts, not the price any particular buyer pays, and averages can sit well away from the model a household is actually considering1.
The running cost figures point to where the household energy decision sits. Charging at home, particularly on an overnight tariff, is where the largest reported savings arise, while public charging at 54p per kWh narrows the gap to petrol to around 2p per mile1. That links the car to the home's electricity supply and tariff rather than to the forecourt. Energy UK argues that greater EV uptake spreads the fixed costs of networks, charging infrastructure and low-carbon generation across more users, and that charging can be shifted to times when electricity is cheapest or when wind and solar output is high2. Households wanting to compare their own position can look at UK domestic energy prices over time and how UK domestic energy prices compare with Europe, while charging options are set out in the EV charging hub, including vehicle-to-grid and vehicle-to-home charging and the Electric Vehicle Chargepoint Grant for renters and flat owners. Registration and charging point numbers are tracked in UK electric vehicle registration statistics and electric vehicle charging device statistics.
What happens next
The ZEV Mandate targets rise over time: 80% of new car sales must be zero-emission by 2030, and 100% of new car and van sales by 20352. Energy UK states that manufacturers can use trading, banking and borrowing to manage compliance, and that those failing to meet annual targets can face penalties2. No further dated steps beyond those targets have been reported.