Electric 'affordability gap' drops to all-time low thanks to Government Grants and greater choice
London, 30th September: Autotrader, the UK’s largest automotive platform, together with ChargeUK and the Society of Motor Manufacturers and Traders (SMMT), today report that the electric price premium over traditionally fuelled cars has fallen to a record low, in the latest update on their initiative combatting misinformation surrounding electric cars.
The joint initiative gathers user-friendly, simplified facts that offer a balanced and data-backed view of the reality of owning and driving electric cars to dispel popular misconceptions.
Updates include:
This announcement marks the first time the upfront price difference between new electric and equivalent internal combustion engine models has fallen to below 20% - a dramatic drop from over a third last year.
This 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, but also reflects the bigger choice of models available on the market, including popular models such as the Renault 5 (from £21,495) and the MG 4 (from £27,245).
The government launch of the Electric Car Grant in July resulted in an immediate uptick in consumer demand for electric cars on Autotrader, the highest spike in interest in three years, when 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 quickly, (+2%) compared to petrol and diesel (+0.5%).[1] Encouragingly, the launch of the Grant has grown enquiries at the affordable end of the market – pushing many models under £37k into the top ten most popular cars on Autotrader – and encouraged those manufacturers whose models aren’t eligible for the ECG to offer more incentives.
Additionally, the used electric market is in solid health with pricing in line with the broader used car market and one in six enquiries now for an electric car, compared to just 2% in 2020.[2] The ECG has had no negative impact on the used market.
The update on The Facts also includes the announcement of Bauer Media’s Fleet News and the Institute for the Motoring Industry as champions of the initiative, who commit to promoting the information to their audiences. They join Zapmap, the National Franchise Dealer Association, the British Vehicle Rental Leasing Association, Cox Automotive Europe and EV drivers’ association EVA England as champions of The Facts.
As well as pricing and charging infrastructure, these facts clarify points such as how electric cars are greener, are no more likely to catch fire than an internal combustion engine car, and that the electric range is better than some might think. The information is available for consumers here: https://www.autotrader.co.uk/content/features/electric-cars-facts-and-figures. The data points are reviewed and updated quarterly. This information is endorsed by the Department for Transport.
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.
Parliamentary Under Secretary of State for Transport, Keir Mathers
With more affordable models than ever before and a government grant to support people to make the switch, it’s no wonder that Autotrader 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.
At the IMI, we believe that easy access to trusted information is essential to help motorists start their electric journey, alongside an automotive workforce with the accredited skills to service, maintain and repair the growing EV parc. We are, therefore, delighted to be joining this initiative to help cut through the noise with clear, evidence-based facts that will give consumers and businesses the confidence to embrace electric vehicles. Collaboration across the sector is vital, and we’re proud to be playing our part.
Nick Connor, CEO of the IMI
A summary of The Facts can be found here, we encourage them to be shared as widely as possible.
Notes to editors
[1] these discounts are separate to the change in upfront price which is calculated using RRP
[2] Autotrader data. Sept 2025.
About Auto Trader
Auto Trader Group plc is the UK’s largest automotive marketplace. It listed on the London Stock Exchange in March 2015 and is a member of the FTSE 100 Index.
Autotrader’s purpose is Driving Change Together. Responsibly. Autotrader is committed to creating a diverse and inclusive culture, it aims to build stronger partnerships with its customers and use its voice and influence to drive more environmentally friendly vehicle choices.
With the largest number of car buyers and the largest choice of trusted stock, Autotrader’s marketplace sits at the heart of the UK car buying process. That marketplace is built on an industry-leading technology and data platform, which is increasingly used across the automotive industry. Autotrader is continuing to bring more of the car buying journey online, creating an improved buying experience, whilst enabling all its retailer partners to sell vehicles online.
Autotrader publishes a monthly used car Retail Price Index which is based on pricing analysis of circa 800,000 unique vehicles. This data is used by the Bank of England to feed the broader UK economic indicators.
For more information, please visit: plc.autotrader.co.uk
Media contact: bryony.mannix@autotrader.co.uk
About SMMT and the UK automotive industry
The Society of Motor Manufacturers and Traders (SMMT) is one of the largest and most influential trade associations, representing the automotive industry in the UK.
The automotive industry is a vital part of the UK economy, integral to growth, the delivery of net zero and the UK as a global trade hub. It contributes £93 billion turnover and £22 billion value added to the UK economy, and invests around £4 billion each year in R&D. It directly employs 198,000 people in manufacturing and some 813,000 across the wider automotive industry. The sector accounts for 12% of total UK exports of goods with more than 140 countries importing UK-produced vehicles, generating £115 billion of trade in total automotive imports and exports.
The UK manufactures almost every type of vehicle, from cars, to vans, taxis, trucks, buses and coaches, as well as specialist and off-highway vehicles, supported by more than 2,500 component providers and some of the world's most skilled engineers. In addition, the sector has vibrant aftermarket and remanufacturing industries. The automotive industry also supports jobs in other key sectors, including advertising, chemicals, finance, logistics and steel.
More detail on UK Automotive available in SMMT's Motor Industry Facts publication at www.smmt.co.uk/reports/smmt-motor-industry-facts/
Media contact: James Boley – jboley@smmt.co.uk / 07927 668565
About ChargeUK
ChargeUK is the voice of the UK’s EV charging industry – the companies that install and operate the network of electric charging points necessary to underpin the UK’s transition to electric vehicles and Net Zero. Our members operate tens of thousands of public chargers, from on-street residential and workplace charge points to ultra-rapid hubs on motorways and major roads.
Follow us on our social channels to keep up with the latest news, insights and company developments.
If you would like to be added to our News & views mailing list, or have any media-related enquiries, please contact our press team:
Sign up to our email alerts service:
Join our news & views mailing list
or submit media-related enquiries:
