Government grants and ongoing manufacturer discounts, as carmakers strive to meet Zero Emission Vehicle (ZEV) mandate targets, have driven a significant shift in the UK automotive market.
For the first time, new electric vehicles (EVs) are now, on average, cheaper to buy than petrol cars in the UK, according to Autotrader data. The average new electric car listed on the UK's largest automotive marketplace is priced at £42,620 (US$57,659) after discounts, compared to £43,405 for a new petrol model - a £785 advantage for electric vehicles.
Average discounts on new EVs eased slightly to 11.7% in April, down from a record 12.8% in March, but remain well above typical levels. Across the broader new car market, discounts averaged 10% in April, up from 8.7% a year ago, reflecting ongoing pricing competition among manufacturers.
Bex Kennett, performance director at Autotrader, noted that the electric car market is becoming increasingly competitive. Support from the government's Electric Car Grant, combined with historically high discounts earlier this year, has brought EV prices below those of petrol cars on average.
She also highlighted that wider geopolitical uncertainty, including the situation in Iran, has pushed fuel costs and energy security to the forefront for buyers, leading to a noticeable increase in interest in both new and used electric cars on the marketplace.
Consumer interest in new cars rose by around 20% in April compared to the same period last year. Improved affordability, government grant support, and the arrival of '26 plate' vehicles have all contributed to increased buyer engagement.
Retailers responded by increasing the number of new cars advertised on Autotrader by 13% in April.
The pricing shift comes as the UK automotive industry faces growing pressure to meet ZEV mandate targets, which require 33% of new car sales to be zero-emission by 2026, rising to 80% by 2030.
EV sales reached a record high in March, with 86,120 battery electric vehicles registered, representing a 24.2% market share and marking the strongest month for EV registrations on record. However, this is still below the 33% target, prompting some industry figures to call for an urgent review of the mandate.
Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), said this development comes as interest in EVs surges, with drivers seeking to avoid rising fuel prices caused by conflict in the Middle East.
Before the conflict, EVs already offered annual savings of over £870, a figure that has now increased to over £1,000. Walker described this as a major milestone in the shift to net-zero emissions, as clean technology becomes more affordable, reducing both bills and carbon emissions.
With EVs now cheaper to buy than petrol cars and interest soaring, Walker said the government has an opportunity to reduce the UK's reliance on volatile oil markets by accelerating the transition to vehicles powered by British wind and solar energy.
ECIU analysis suggests that if oil prices rise to US$100 per barrel, petrol could increase from 135p to 150p per litre, costing drivers covering 8,000 miles a year almost £140 more annually. At US$120 per barrel, petrol could reach 170p per litre, raising annual fuelling costs by over £320. Meanwhile, electricity price caps until June will shield EV drivers from global energy market shocks.
This pricing milestone follows a period of strong growth in the UK EV market, with March 2026 seeing double-digit year-on-year growth of 22%-24% for battery EVs, according to data from New AutoMotive and the Society of Motor Manufacturers and Traders (SMMT).
The UK government has also supported domestic EV battery development with over £600 million in grant funding through the DRIVE35 programme and Battery Innovation Programme, including a £380 million grant for the Agratas gigafactory in Somerset, which will have a 40GWh capacity once operational.
Recent research highlights the importance of consumer engagement in driving adoption. A report from JBP Associates found that quality, clarity, and consistency of communication and engagement are key to building consumer confidence, with clear messaging and hands-on experience identified as crucial for accelerating uptake.
Chinese brands are gaining ground in the UK market. MG reclaimed its position as the most popular new electric car brand on Autotrader in April, accounting for 11.7% of all new electric car enquiries, ahead of Renault at 7.5% and Kia at 7.3%.
The Renault 5 E-Tech Electric was the most in-demand electric car among consumers, making up 6.4% of all enquiries, followed by the Jaecoo 5 at 3.4% and MG S5 at 3.1%.
Chinese-made vehicles continue to gain traction, with the Jaecoo 7, MG S9, Omoda 5, Chery Tiggo, and MG HS all ranking among the top ten most in-demand models across all fuel types.
The Volkswagen Golf maintained its lead, topping the rankings for the third consecutive month with 3.4% of enquiries, ahead of the Jaecoo 7 at 3.1% and the Land Rover Defender 110 at 2.4%.
At the brand level, BMW was the most in-demand brand across all fuel types, with 9.9% of enquiries, followed by MG at 8.7% and Land Rover at 8.2%.
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