The UK government has unveiled a significant new Electric Car Grant scheme, injecting £650 million to bolster electric vehicle (EV) sales. Set to commence on Wednesday, this initiative marks the return of direct grants for new electric vehicles after a three-year hiatus, aiming to revitalize the nation's transition to zero-emission transport.
Under the new scheme, car buyers can access grants of up to £3,750 for EVs with a list price of £37,000 or below. The highest grant amounts are reserved for the greenest models, while 'Band two' vehicles qualify for up to £1,500. A key eligibility criterion is a vehicle's carbon footprint from manufacturing to showroom. This means UK-produced EVs under £37,000 are expected to secure the top grant, giving a strategic boost to domestic manufacturing. Conversely, some of the most affordable Chinese-produced EVs may not qualify.
The reintroduction of these grants comes as new EV sales have struggled to meet the UK's ambitious emissions targets. Challenges identified include the higher upfront cost of electric cars compared to their conventional counterparts, economic pressures on consumers and businesses, and ongoing concerns about the public charging infrastructure. The Department for Transport (DfT) highlights that despite these hurdles, 33 new electric car models are currently available for under £30,000, making EVs more accessible than ever.
Transport Secretary Heidi Alexander expressed optimism that the EV grant will offer tangible financial benefits to consumers and unlock significant opportunities for the automotive sector. She also underscored the growing charging infrastructure, with over 82,000 public charge points now available across the UK, a development designed to build consumer confidence in making the switch to electric.
This government push is crucial as the UK moves towards its 2030 ban on the sale of new fully petrol or diesel cars and vans, with non-plug-in hybrid sales permitted until 2035. These grants are anticipated to help the industry not only meet but exceed the current zero-emission vehicle mandate, which requires at least 28% of new cars sold by each manufacturer in the UK this year to be zero-emission – a figure that stood at 21.6% in the first half of the year.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, lauded the grants, stating they send a "clear signal to consumers that now is the time to switch" and will provide vital momentum to grow the EV market share from its current one in four to a projected four in five by the end of the decade. While there has been some political debate regarding taxpayer funding for the scheme, the overarching sentiment within the EV sector is one of renewed optimism for accelerating electric adoption.