One year on from the launch of the Electric Car Grant (ECG), new data from Autotrader shows the average price gap between a new electric vehicle and a new petrol car has narrowed from £1,935 to just £40.
For two months (March and April 2026) new EVs were actually cheaper than the average new petrol car for the first time (£455 cheaper in April).
Figures are based on average pricing across all new models, and include discounts and grants.
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Autotrader’s data shows eight of the 10 most-viewed new EVs on Autotrader in June, and year-to-date, either qualify for the ECG directly or come with a manufacturer-funded equivalent worth £1,500 to £3,750, with the Renault 5 E-Tech the most in-demand EV in both periods (ECG eligible – 52 kWh battery model qualifies for £3,750 discount and 40 kWh battery qualifies for a £1,500 ECG grant).
In the three months immediately after the ECG launched, the Ford Puma Gen-E’s price premium over its petrol equivalent fell from 13% to just 1%, while the Leapmotor C10 went from a 7% premium to being 5% cheaper than its petrol counterpart.
The Puma Gen-E and Leapmotor C10 were also the two biggest climbers on Autotrader’s new EV leaderboard, jumping 67 and 101 places respectively as buyers piled in behind the biggest discount
Rising petrol prices, driven in part by the conflict in the Middle East, have added further momentum to the shift towards electric in recent months.
Ian Plummer, commercial director at Autotrader, said: “A year ago, switching to electric meant paying a premium of almost £2,000 over a petrol equivalent on average. That gap has all but closed, and for a couple of months this spring it went the other way entirely. The Electric Car Grant has clearly played its part, and it’s removing one of the last big psychological barriers that’s kept drivers on the fence about making the switch.”
“The positive impact of these incentives is all the more reason why the Government needs to be cautious over the introduction of pay per mile charging following its consultation response this week. There’s a real risk this additional fee could dampen electric demand, as consumer behaviour on Autotrader shows repeatedly that the electric transition is incredibly cost sensitive. Consumers need to be confident electric cars will work for them financially and with fuel cost savings at £960 on average, for many they will do- let’s not send confusing messages.”
