July 25, 2025 By Cars UK
The new Electric Car Grant is an ill-thought-out policy hastily announced to try to bolster EV sales and is badly targeted.
As we’re all being forced into EVs by legislation, the UK government has decided to launch the new Electric Car Grant to bolster sales with a grant of up to £3,750, but the announcement was made without systems in place to make it work.
Having announced the grant, it won’t be until 11 August before we know what cars are eligible, which has led to orders for EVs stalling in a big way and car makers, from Hyundai and Kia to MG and more, announcing their own ‘EV Grant’ to try and get buyers back on board.
That’s a big enough mess, but the focus of the grant is completely missing what should be its aim: to get private buyers into EVs.
As far as we can see, the new grant will be delivered to the car makers, not the buyer, and even dealers pre-registering EVs will be eligible. Which is mad.
Fleet buyers already get big tax breaks for EVs, which has led to more than 80% of EVs registered to them, so wouldn’t it make more sense to target the grant at private buyers only?
If we’re going to spend £650 million on subsidising EV purchases, then make it only available to private buyers, make it a £5k grant for any EV, and make that payable to the buyer directly once they take delivery.
Or is that too simple?
Filed Under: Car News Tagged With: Electric Cars
