One of the biggest hurdles blocking drivers from switching to electric cars is their premium price tags.
But a new study claims they might actually be a cheaper option than choosing a plug-in hybrid vehicle (PHEV) – which is seen as a stepping stone from a conventional petrol or diesel car to owning an EV.
Because a PHEV has a combustion engine as well as a battery, motorists do not have to worry about running out of power mid-journey.
But with the average new electric car having a range of 300 miles and the nation’s charging network becoming more robust, this type of anxiety is rapidly diminishing.
And so too is the price gap between EVs and other fuel types, says the Energy and Climate Intelligence Unit (ECIU) think tank.
Its analysis found the recommend retail prices of the UK’s 10 best-selling new PHEVs are, on average, £4,150 higher than an equivalent EV.
BYD’s Seal U DM-i – which starts from £33,340 – was the nation’s most-bought PHEV in Britain last year. But a think tank says an EV alternative will likely be cheaper than a PHEV
The ECIU looked a volume selling models to understand if customers will pay more for an PHEV than they would the like-for-like EV.
It found that the VW Tiguan PHEV is £5,780 more expensive than an all-electric VW ID.4.
Ford’s Kuga PHEV works out £4,035 pricier than the Ford Explorer EV.
And even Chinese examples, like the MG HS PHEV, are around £3,400 more expensive than a full EV alternative (MG S5 EV).
This is partly because the average price of new EVs is starting to show signs of declining, partly helped by the Government’s electric car grants shaving up to £3,750 off some models.
The report comes amid growing criticism of PHEVs, which are said to consume five times the petrol manufacturers claim they will, as well as being worse for the environment than official CO2 emissions suggest.
This is because PHEVs typically are only greener than a traditional petrol and diesel car when running on EV power alone. They also have limited electric-only ranges and the rest of the time the combustion engine has to carry the extra weight of the battery.
Experts, sourcing data from fleets, also suggests that many owners do not fully charge the PHEV’s battery regularly, which ultimately wipes out the eco benefits of running one.
As such, the ECIU estimates that a PHEV will – on average – cost £620 a year more to fuel than their EV equivalents.
Brussels-based Transport & Environment says PHEVs consume 490% more fuel than the manufacturers’ official figures published online and in sales brochures
Figures from the Society of Motor Manufacturers and Traders (SMMT) show the market share of new PHEVs in March was 13 per cent, up from 9.5 per cent during the same month last year.
The growth in their popularity has largely been driven by the arrival of new Chinese brands, especially the likes of Jaecoo, Omoda and BYD.
The recent surge in fuel prices triggered by conflict in Iran is also believed to have made PHEVs more appealing to motorists.
The study says that Ford’s Kuga PHEV works out £4,035 pricier than the Ford Explorer EV
The all-electric Ford Explorer (pictured) costs from £35,095
But Colin Walker, the ECIU’s head of transport, says there is a risk that drivers looking to ‘shield themselves’ from high fuel prices may switch to vehicles that ‘simply won’t deliver the savings promised’.
He went on: ‘The reality is that PHEVs cost more to buy, and more to run, than their electric equivalents.
‘PHEVs rely on petrol for most of their driving, and burn much more of it than their manufacturers claim.
‘The best way that drivers can reduce their exposure to spikes in global oil markets is shift to vehicles that don’t need oil to move – EVs.’
SMMT chief executive Mike Hawes said car-makers are legally required to test all vehicles to the ‘same repeatable, Government-verified standard’.
He added: ‘Despite massive discounting by manufacturers to drive up demand for EVs, many drivers have yet to be convinced given concerns over the availability and high cost of public charging.
‘Therefore manufacturers have also developed a range of technologies so everyone can reduce their emissions.
‘Plug-ins can be a crucial stepping stone to going fully electric, allowing people to become familiar with zero-emission driving and helping to overcome anxiety.’
Analysis by online vehicle marketplace Autotrader last week revealed new EVs have become cheaper to buy than petrol models for the first time, which it attributed to Government grants and ‘sustained manufacturer discounting’.
The zero-emissions vehicle (ZEV) mandate sets headline targets for the proportion of new cars sold by each manufacturer that are zero-emission, which generally means pure battery electric.
This year it is 33 per cent.
But manufacturers are able to comply by using using flexibilities, such as selling high volumes of plug-ins.
The Government has rejected calls from the automotive sector to bring forward a planned review of the programme in 2027.
Manufacturers claim the mandate puts too much pressure on them to offer unsustainable discounts on new EVs.