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UK Government Launches £650 Million Electric Car Grant to Boost EV Adoption

Electric and Concept Cars

Business Honor - UK Launches £650M EV Grant to Boost Adoption

Business Honor
15 July, 2025

New £3,750 discounts make electric cars more affordable, supporting the UK’s green transition.

Since 16 July 2025, motorists in the UK will be assisted by a new £650 million Electric Car Grant (ECG), which will offer up to £3,750 discounts on eligible electric vehicles (EVs). The action is under the government's "Plan for Change" and is set to put electric car ownership within reach of and make it affordable for thousands of UK families. The grant aims to support both foreign and UK motor manufacturers that uphold high levels of sustainability. The discount is offered on new zero-emission vehicles priced up to £37,000, and this will cap the price gap between electric and conventional petrol or diesel cars. With the electric vehicles made cheaper, the grant will save motorists up to £1,500 annually in terms of fuel and operational expenses compared to petrol cars.

The push by the UK government to accelerate the electric car transition is in line with its broader campaign to remove diesel and petrol cars from roads by 2030. Over 380,000 zero-emission vehicles were added to the UK's roads last year, which is the growing trend of EVs. With the new discount scheme, even more motorists now feel free to switch to electric cars without worrying about costly upfront expenses. In addition to the grant, the UK has also created a network of over 82,000 public charging points, which enable car drivers to charge their vehicles at home, in the office, or on the move. The infrastructure combined with ongoing investment in EV technologies will make the UK a global leader in the move towards zero-emission driving.

The Electric Car Grant is just part of the government's £4.5 billion investment to support the EV revolution, for example, home charging incentives and further growth in the EV market. With these steps, the UK is going towards a greener future and helping families save money while reducing their carbon footprint.