Vauxhall has announced that its upcoming Frontera SUV will be available at the same price whether consumers opt for the electric or petrol-hybrid variant. Priced at £23,495, the Frontera Electric becomes the first electric car to achieve price parity with its petrol counterpart!
A First for the Market: EV and Petrol Prices Aligned
Vauxhall’s decision to price the Frontera Electric and its petrol-hybrid sibling equally is a bold statement in the evolving EV landscape. Historically, electric vehicles have carried a price premium over petrol cars because of the high cost of batteries and concern over EV battery warranties. On average, this premium has been around 31% across the UK market.
The Frontera’s pricing strategy, however, aims to eliminate this gap, positioning the EV as one of the most affordable family-friendly electric SUVs available in the UK.
The base model of the Frontera Electric comes equipped with a 44kWh battery, offering a range of 186 miles and a 0-to-62 mph time of 12.1 seconds. Charging capabilities of up to 100kW ensure that recharging is efficient. A more powerful Long Range version, set to launch next year, promises a range of up to 248 miles.
The petrol-hybrid version features a 1.2-litre three-cylinder engine paired with a 48V electric motor, offering a combined output of 99bhp. For an additional £1,500, buyers can upgrade to a more potent 134bhp hybrid powertrain, providing a versatile option for those not yet ready to make the switch to full electric.
The Impact of the ZEV Mandate
The move to align the prices of electric and petrol vehicles is not just a reflection of technological advancements but also of regulatory influence. The UK government’s Zero Emission Vehicle (ZEV) mandate, which came into effect in January, requires that an increasing proportion of a manufacturer’s sales be zero-emission vehicles. For 2024, this target is set at 22%, with penalties imposed on manufacturers who fail to meet this threshold.
Vauxhall’s pricing strategy suggests that the ZEV mandate is having the intended effect, it is encouraging manufacturers to accelerate the development and introduction of more affordable EVs. This is particularly significant as the mandate’s targets will continue to rise, reaching 80% by 2030, coinciding with the government’s planned ban on new petrol and diesel car sales.
James Taylor, Vauxhall’s UK Managing Director, acknowledged the pressure the mandate places on manufacturers. He indicated that while Vauxhall is on track to achieve a 25% EV sales mix this year, meeting future targets will be increasingly challenging without additional market support or incentives.
What This Means for UK EV Owners
For UK consumers, Vauxhall’s price parity announcement is very welcome news. It marks the first time that buyers can choose an EV without paying a premium over a petrol model! This could accelerate the adoption of EVs, particularly among budget-conscious buyers who are relying on leasing an EV or utilising other government incentives such as salary sacrifice schemes.
However, while this development is promising, it also highlights ongoing challenges within the EV market. Although the initial purchase price may now be comparable, Vauxhall’s leadership has pointed out that achieving profit parity between EVs and petrol vehicles is still a few years away. Also, EV owners usually pay a much higher price for EV insurance and are faced with increasing energy costs in the UK as the government increases the energy price cap.
So while consumers benefit from lower prices, manufacturers may be absorbing higher costs, which could impact the pace of future innovations or the variety of models available.
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John is the Editor and Spokesperson for Electric Car Guide.
With over 20 years of writing experience, he has written for titles such as City AM, FE News and NerdWallet.com, covering various automotive and personal finance topics.
John’s market commentary has been covered by the likes of The Express, The Independent, Yahoo Finance and The Evening Standard.
