Electric car prices are dropping fast, according to the first publication of the E.ON Next/The Independent EV Price Index.

The energy giant and media company have combined to produce the UK's first-ever electric car price index that measures real-world prices (including available discounts) on every EV on sale in the UK.

The first E.ON Next/The Independent EV Price Index has revealed that over the past twelve months the median price of an EV has fallen by 7.7 per cent, a figure of £3,750.

Month-on-month, there's been a sizeable drop of £1,228 or 2.7 per cent, thanks to the introduction of the government's electric car grant and the additional discounts car makers introduced while waiting for the grant to be implemented.

The biggest year-on-year drop has been in the competitive small electric SUV segment - including cars like the Citroen e-C4, Mercedes EQA, Peugeot 2008 and BMW iX1 - where a drop of £5,827 or 13 per cent has been seen. Larger medium-sized electric SUVs - like the Audi Q4 e-Tron, Ford Explorer, Nissan Ariya and Skoda Enyaq - show a similarly-large year-on-year drop of £4,666 or 9.8 per cent.

The data for the E.ON Next/The Independent EV Price Index has been compiled by auto industry market insight and pricing data specialists Insider Car Deals. The prices quoted are median prices sourced from Insider Car Deal's mystery shopping and market research analysis and are based on real-world discounts offered, including any incentives given as part of finance packages.

As well as analysing prices, the E.ON Next/The Independent EV Price Index has also revealed an increase of 25 per cent in the number of electric cars available in the UK over the past year. At the time of research there were 111 electric vehicle models available in the UK, with that number increasing all the time.

When various trim levels and different battery options are taken into account across all available models, there is a choice of 1,029 different electric car choices for UK car buyers - up 32 per cent year-on-year.

The research has also shown that median PCP (Personal Contract Purchase) monthly payments for electric cars have dropped by £55 a month, or 10.8 per cent compared with a year ago. Again, the biggest drop is in the small electric SUV segment, were median monthly payments are down £76 or 16.6 per cent per month.

The quoted PCP terms are based on discounted transaction prices, manufacturer's APR and GFV and standardised at four years, 8,000-10,000 miles per year and a 15 per cent customer deposit (plus any manufacturer deposit contribution). Where a manufacturer imposes a maximum term of 42 or 36 months, that shorter term is used instead.

One standout deal uncovered by the E.ON Next/The Independent EV Price Index research was for a Vauxhall Mokka 115kW Ultimate 54kWh, with total discount and finance savings of 36.4 per cent (£13,524). That brings the price down to just £24,580, or a possible £292 a month on Vauxhall's PCP finance plan.

The research also highlighted the difference in average PCP APR finance rates available on electric cars versus hybrid and internal combustion engine (ICE) models. Buyers of EVs will, on average, benefit from PCP APRs that are 3.1 per cent lower than they are for ICE models and 2.2 per cent for hybrids. The average PCP APR for an electric car currently sits at 3.5 per cent.

At the time of research, nine car makers were offering zero per cent finance - the same number as this time last year, although the brands have changed. The scale of finance deposit contributions on electric vehicles has also been revealed with the highest seen being £7,750.

E.ON Next / The Independent EV Price Index reveals electric car prices down