Saving Up to £3,750 on New Electric Vehicles with Electric Car Grant
The UK government has announced the introduction of a new Electric Car Grant (ECG) worth up to £3,750 for new electric vehicles (EVs), starting from 16th July 2025. This initiative is aimed at making electric cars more affordable for cash-strapped retail buyers, as the country continues to accelerate the adoption of electric vehicles (EVs).
The ECG will be available until the 2028/29 financial year, and it is expected to result in discounted EVs appearing at dealerships across the country within weeks. The grant will apply to EVs priced at or under £37,000, marking a shift from the existing £40,000 Expensive Car Supplement.
RAC head of policy Simon Williams believes the new ECG could be just the shot-in-the-arm needed to help more drivers go electric. Mike Hawes, SMMT chief executive, welcomes the return of government support for electric vehicles, seeing it as a clear signal to consumers that now is the time to switch. Ford UK chair and MD Lisa Brankin appreciates the confirmation of consumer grants, stating it will make purchasing an electric vehicle much more affordable.
Adam Wood, MD of Renault UK, which made the best-selling EV for private buyers in April and May, finds the incentives extremely welcome. Ian Plummer, commercial director at Autotrader, believes that the ECG will make it easier for more people to switch to electric vehicles due to affordability being a significant barrier.
The ECG focuses on sustainably-built electric cars that meet the 'highest manufacturing sustainability standards'. The biggest savings from the ECG will be given to cars with the strongest 'green' manufacturing credentials. However, specific details about the ECG for the 2025-2028/29 financial years, including the amount of the grant or the types of cars eligible, are not detailed in the provided sources.
It is worth noting that the average new electric car costs £49,154, while the average new petrol car costs £33,980, resulting in an electric car price premium of over £15,000. The new ECG is expected to help bridge this gap, making electric cars more competitive in terms of cost.
For the most precise and up-to-date eligibility and grant amounts, it is recommended to consult the UK government's official Department for Transport or Office for Zero Emission Vehicles websites, which publish detailed guidance on EV grants annually.
- The UK government's Electric Car Grant (ECG) worth up to £3,750 for new electric vehicles (EVs) is set to start from 16th July 2025.
- This grant is intended to make electric cars more affordable for cash-strapped retail buyers, as part of the UK's efforts to accelerate the adoption of electric vehicles (EVs).
- The ECG will be applicable to EVs priced at or under £37,000, marking a shift from the existing £40,000 Expensive Car Supplement.
- RAC head of policy Simon Williams believes the new ECG could help more drivers switch to electric vehicles, while Ford UK chair and MD Lisa Brankin finds it will make buying an electric vehicle much more affordable.
- The ECG focuses on sustainably-built electric cars that meet the 'highest manufacturing sustainability standards', with the biggest savings reserved for cars with the strongest 'green' manufacturing credentials.
- For the most accurate and up-to-date information about ECG eligibility and grant amounts, it is recommended to consult the UK government's Department for Transport or Office for Zero Emission Vehicles websites.
