11:25 am, September 30, 2025
The price gap between electric and ICE vehicles has reached a record low, according to new data compiled by Auto Trader.
In conjunction with ChargeUK and the SMMT, the sales platform reported that the electric price premium for new cars has fallen to 19%, compared with a 33% difference in September 2024.
The average gap between electric and petrol cars of the same model is now £8,299 based on list price, the fist time that the differential has dropped below 20%.
In addition, the report showed that the number of public charge points around the UK has increased to 85,163 and that the number of ultra rapid chargers is now 17,132 up from 16,259.
The report suggests that the reduction 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.
Despite only a handful of models qualifying for the full £3,750 discount, a number of popular models are eligible for the lower level grant, including the Renault 5 (from £21,495) and the MG 4 (from £27,245).
Auto Trader says that the launch of the government grant in July resulted in an immediate boom in consumer demand for electric cars on Autotrader, which reported the highest spike in interest in three years, after Russia’s invasion of Ukraine triggered a sharp rise in energy prices.
Since the launch of the grant, discounts on new electric cars priced £37,000 and below have risen compared with those on petrol and diesel cars, pushing many models under £37,000 into the top ten most popular cars on Auto Trader.
Used values of EVs are stabilising, too, with one in six used car enquiries now for an electric car, compared to just 2% in 2020.
Erin Baker, editorial director at Auto Trader, said: ‘With more affordable models than ever before and a government grant to support people to make the switch, it’s no wonder that Auto Trader 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.’
The findings have also been welcomed by the government, which is backing the grant to continue to have a significant impact on EV sales.
Keir Mathers, parliamentary under secretary of state for transport, added: ‘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.’
