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Discounted EVs are expected at dealerships within weeks, following the UK government’s launch of a revamped Electric Car Grant (ECG) scheme offering up to £3,750 off approved EV models.
Transport Secretary Heidi Alexander confirmed the introduction of the £650 million ECG, with grants available on EVs priced under £37,000. The new initiative, effective this week, is designed to be hassle-free for buyers — dealers and manufacturers will handle the paperwork.
While details on which specific cars qualify are still to come, the government has set out a sustainability-based criteria for grant levels. Key highlights:
Each vehicle’s environmental score will be calculated based on CO₂ emissions of the electricity grid in the countries where batteries and final assembly are completed.
Volkswagen Group, Renault, and Ford are among the major manufacturers already signed up to SBTs, but none could confirm which of their EVs will qualify yet.
Car makers will be able to apply for grant funding from Wednesday, with a digital logging system going live on August 11. Applications will be reviewed on a first-come, first-served basis.
Buyers who purchase EVs before approval will not be eligible for retrospective grants, raising concerns that sales may temporarily stall while consumers await confirmation.
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders (SMMT), welcomed the move:
“Today’s announcement of the return of government support for EV purchases is a clear signal to consumers that now is the time to switch.”
He called the initiative a “welcome response” to industry demands and vital to scaling the EV market from 1 in 4 today to 4 in 5 by 2030.
However, Toby Poston, CEO of the British Vehicle Rental and Leasing Association (BVRLA), warned of negative effects on the used EV market:
“This generous grant will boost retail uptake but could worsen the depreciation issues already hitting second-hand EV values. That may drive up finance costs for new EVs, cancelling out the grant’s benefits.”