It could be that the insurance is covered by the car dealer for the first year, ditto road tax. Or, as mentioned, if it's below a certain CO2 level, it can be free. But I'd guess it is an 'on the road' price.
The biggest problem is that, while the running costs would be cheaper that first year... the next year you'd have to pay road tax, insurance, etc. And when you get to 3 years, MOT. So you're paying 5 grand more in year 1 to save 700 quid in year 1. Um.
They don't even show the cost of buying new vs buying second hand! And you don't pay VAT on second hand... So yeah, dodgy article.