Electric market overview:

New average electric RRP: £49,154 (July so far)
New average petrol RRP: £33,980 (July so far)
Average price of a new electric car from a volume manufacturer is £35,865
67 new EVs under £37k - 44% of the 153 new EV models available
13th July saw biggest electric share of new and used advert views all year (8%) on Auto Trader’s website, which has 80m+ visits a month
Current sales trajectory of new electric cars would see just 45% market share by 2030 – well below the 80% ZEV Mandate target
52% of consumers say affordability is the biggest barrier to switching to EVs (Road to 2030 report)
Tax changes in April have added more than £600 to the cost of EVs priced at £40,000 or more as EVs become subject to the £425 expensive car supplement as well as the £195 Vehicle Excise Duty)
Upfront RRP difference 22% on new EV v ICE (down from 36% last year and 25% in January)
36 new EV models are under £30,000, 2 in 5 used EVs now £20,000 or under

Affordability has consistently been the biggest barrier to electric adoption, and it’ll be great to see these grants make it easier for more people to make the switch. Although this support is only for new EVs, it’s likely the momentum and attention will see even more consumers considering used electric cars too as we know the majority, almost nine in 10, of electric buyers cross-shop. Following the trail of yesterday’s announcement, electric share of new and used markets combined hit a 2025 high of 8% highlighting this halo effect. With used EVs generating 15 times more sales enquiries than new EVs, and the volume of used EV enquiries on Auto Trader growing 92% since June 2023, it’s clear the used market will be key to unlocking mainstream adoption and so all retailers should be able to capitalise on the broader opportunity this week’s announcement offers.

We saw tax rises in April that have made it more expensive for people to drive electric vehicles, so any incentives to help people buy one are welcome. Although more consumers than ever are looking to make the switch, many are still put off by the high upfront cost. There are now more EV models available than ever, varying in size and cost, so consumer choice is there. And as charging gets easier and with (possible) incentives for those without driveways, this should help reduce any lifestyle barriers people might have, providing even more peace of mind to make the switch.