Labour’s new electric car grant is a slap in the face for ordinary motorists and could leave private dealerships in the mud. Last month, the Government confirmed the introduction of a new EV grant with £3,750 offered on the sale of brand-new electric models priced under £37,000.
The move may look like Labour is on the side of drivers but the deal is simple, here’s a little bit of money off a really expensive item that no one can actually afford or really wants. How will the lower to middle income families struggling day to day to make ends meet actually benefit from such a scheme? According to data from NimbleFins, the average cost of buying a brand new electric car is around £46,000. ‘Okay, I'll take two please’ just isn’t on the lips of ordinary road users.
The cheapest EV on the market, the Dacia Spring, is still an eye-watering £14,995, still way out of many people’s price ranges.
Bear in mind, the majority of the country actually doesn't have an electric car at all. Data from the RAC Foundation shows that of the 32.9 million cars licensed in Great Britain by the end of 2024, 18.6 million (56.54%) were petrol and 10.1 million (30.7%) were diesel.
Despite this, Labour is all too happy to rip apart the majority of drivers with ULEZ hikes and petrol pump rises while catering to a select special few who have the cash in their pockets to make the EV transition.
The aim of the grant is simple: boost sales of electric vehicles sufficiently ahead of 2030 to ready the country for Labour’s own enforced petrol and diesel sales ban by the end of the decade.
EV sales are up but AutoTrader has previously warned that sales are “primarily driven by fleets”, with “demand from the consumer market falling significantly.”
Earlier this year, the Society of Motor Manufacturers and Traders (SMMT) even described private electric car sales as “weak”.
However, the move could yet backfire with private dealers already reporting the new scheme is having a major impact. Dealers have reported “chaos” in showrooms, with drivers holding off finalising their EV purchases until they see whether their dream car is included.
Firms have reported seeing a logjam of customers waiting to find out if they will qualify for the grant instead of putting their money down on the table and getting the keys.
So, it seems a Labour scheme to boost EV sales is actually having the opposite effect, with total EV sales figures likely to drop to take into account buyers' hesitation.
