A huge £650 million scheme has been launched to help drivers save up to £3,750 off a brand-new electric car (EV).
With discounts available on EVs costing £37,000 or less, the UK Government is looking to make inroads on reducing the cost of purchasing a battery electric vehicle.
The best part of this new scheme? The savings are applied automatically at the dealership, meaning customers don’t need to complete any forms or retroactively claim the money back themselves.
The new scheme is designed to encourage more drivers to make the switch to electric, while also rewarding manufacturers who are committed to sustainability.
To qualify, vehicle manufacturers must have science-based net zero targets, ensuring that only the cleanest, most responsible brands are included.
The size of the discount will depend on how environmentally friendly the vehicle is, with models meeting the highest standards eligible for the full £3,750 reduction.
Meanwhile, a second tier for cars that meet at least some of the environmental criteria will benefit from a £1,500 discount through the grant.
Funding will be offered on a first-come, first-served basis – so once a manufacturer applies and their vehicles are approved, those EVs will appear in showrooms with the new discounted prices.
The scheme will run until at least 2028/29, or until funding is fully allocated. A government-approved list of eligible models is expected to be published soon.
This move comes ahead of the UK’s planned 2030 ban on the sale of new petrol and diesel vehicles.
By easing the upfront cost and supporting cleaner car brands, the Electric Car Grant is a powerful push toward a more sustainable automotive future.
Key Takeaways:
- Up to £3,750 off new electric cars costing no more than £37,000
- Discount applied automatically at the point of sale – no paperwork for customers
- Only applies to manufacturers with net zero emissions targets
- First-come, first-served model approval process
- Scheme runs until 2028/29 or until funds are used
- Eligible car list to be published soon
There will be further updates on the new EV grant – including the list of cars eligible, and for which grant – you can sign up below for updates.
