From 16th July 2025, UK drivers will be able to claim up to £3,750 off a new electric car, thanks to a new £650 million government grant aimed at making EVs more affordable and encouraging the transition away from petrol and diesel.
The new Electric Car Grant (ECG) will apply to new zero-emission vehicles priced at £37,000 or less, with discounts applied at the point of sale. Backed by the Department for Transport and the Office for Zero Emission Vehicles, the scheme is designed to support British motorists and manufacturers alike, while promoting the government’s goal of ending the sale of new petrol and diesel cars by 2030.
Manufacturers can apply to have their EV models included in the programme starting on 16th July, with funding available until the 2028–29 financial year. Vehicles that meet higher environmental and manufacturing sustainability standards will qualify for the full £3,750 discount, while others may receive smaller reductions.
Cheaper to Buy
The grant aims to reduce the upfront price gap between petrol and electric vehicles, identified as a major barrier to EV adoption. On top of purchase savings, EV drivers can already save around £1,500 a year on fuel and running costs. Combine that with preferential tax rates, and the case for switching becomes even more appealing.
Currently, 2 in 5 used EVs sell for under £20,000, and there are 33 new EV models available for less than £30,000. These figures certainly seem to signal growing affordability in the market.
Transport Secretary, Heidi Alexander
“This EV grant will not only allow people to keep more of their hard-earned money, it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.
And with over 82,000 public chargepoints now available across the UK, we’ve built the infrastructure families need to make the switch with confidence.
This is our Plan for Change in action. We’re backing British drivers, British jobs and British growth.”
The grant is part of a wider £4.5 billion push to support the transition to zero-emission transport, which includes a £63 million package for home charging, NHS fleet electrification, and commercial depot upgrades.
The UK already leads Europe in EV sales, registering 380,000 new zero-emission cars in 2024. With over 82,000 public chargepoints now live and another added roughly every 30 minutes, infrastructure is keeping pace with sales.
The scheme complements the Zero Emission Vehicle (ZEV) Mandate, which requires manufacturers to steadily increase EV sales percentages each year. Recent updates to that policy, alongside new trade agreements and infrastructure funding, suggest the UK is positioning itself as a serious player in the global EV shift.
Read more automotive industry news
Leave a Reply
You must be logged in to post a comment.