UK Launches £650M Electric Car Grant To Boost EV Uptake

The UK Government has reintroduced an Electric Car Grant worth up to £3,750 to encourage the adoption of battery electric vehicles (BEVs) priced at £37,000 or less, with funding confirmed through 2028-29. The grant features a two-tier system based on manufacturers' sustainability standards, with the greenest vehicles eligible for the full £3,750 discount and others receiving up to £1,500. Transport Secretary Heidi Alexander emphasized that this £650 million scheme aims to boost private EV sales, which have lagged behind fleet registrations, while also supporting the automotive sector's transition to zero emission vehicles. Industry leaders like Toby Poston of the BVRLA welcomed the grant but cautioned about potential negative impacts on the used EV market, including depreciation and higher finance costs. Additional government investments include £63 million to expand EV charging infrastructure, addressing concerns that insufficient charging availability and home electricity limitations remain barriers for some potential buyers. Overall, the grant and accompanying measures represent a significant effort to accelerate the UK's electric vehicle market and meet climate targets.