Jul 15, 2025
Britain is providing discounts on electric vehicles to increase demand.
The British government will provide discounts of up to 3,750 pounds ($5,037) for buyers of electric cars priced at 37,000 pounds or less, as part of a new initiative aimed at aligning consumer demand with net-zero emissions goals.
The government plans to allocate 650 million pounds for this discount program, which will be available starting July 15 once automakers enroll.
As part of its broader objective to achieve net-zero greenhouse gas emissions by 2050, Britain aims to eliminate the sale of new gasoline and diesel vehicles by 2030. However, interest in electric cars has slowed, primarily due to high upfront costs.
Transport Secretary Heidi Alexander remarked that this grant will help consumers save money and boost the automotive sector's potential.
The initiative follows requests from the automotive industry for EV incentives, as manufacturers must sell more electric vehicles annually to meet emissions targets or face fines.
Britain ended a previous electric vehicle incentive program in 2022 as the then-Conservative government shifted focus to expanding public charging infrastructure. Several European countries, including Norway, France, and Germany, continue to provide incentives for electric vehicle buyers, such as subsidies and tax exemptions.
In April, the UK government eased some EV sales targets for automakers as they dealt with new tariffs on U.S. sales, their second-largest market after the EU.
UK's EV subsidies will remain in effect until 2028/29. Ginny Buckley, CEO of Electrifying.com, noted that nearly half of electric models will be more affordable due to these "long overdue" incentives.
The government confirmed that the 650-million-pound funding for the Electric Car Grant will be accessible until 2028/29. In contrast, automakers had already spent about 6.5 billion pounds on electric vehicle discounts since the launch of the EV sales targets in early 2024, according to Mike Hawes, head of the UK’s automaker association, the SMMT.
Hawes praised the new grant on July 14, stating it sends a "clear signal" for drivers to switch to electric vehicles.
The government plans to allocate 650 million pounds for this discount program, which will be available starting July 15 once automakers enroll.
As part of its broader objective to achieve net-zero greenhouse gas emissions by 2050, Britain aims to eliminate the sale of new gasoline and diesel vehicles by 2030. However, interest in electric cars has slowed, primarily due to high upfront costs.
Transport Secretary Heidi Alexander remarked that this grant will help consumers save money and boost the automotive sector's potential.
The initiative follows requests from the automotive industry for EV incentives, as manufacturers must sell more electric vehicles annually to meet emissions targets or face fines.
Britain ended a previous electric vehicle incentive program in 2022 as the then-Conservative government shifted focus to expanding public charging infrastructure. Several European countries, including Norway, France, and Germany, continue to provide incentives for electric vehicle buyers, such as subsidies and tax exemptions.
In April, the UK government eased some EV sales targets for automakers as they dealt with new tariffs on U.S. sales, their second-largest market after the EU.
UK's EV subsidies will remain in effect until 2028/29. Ginny Buckley, CEO of Electrifying.com, noted that nearly half of electric models will be more affordable due to these "long overdue" incentives.
The government confirmed that the 650-million-pound funding for the Electric Car Grant will be accessible until 2028/29. In contrast, automakers had already spent about 6.5 billion pounds on electric vehicle discounts since the launch of the EV sales targets in early 2024, according to Mike Hawes, head of the UK’s automaker association, the SMMT.
Hawes praised the new grant on July 14, stating it sends a "clear signal" for drivers to switch to electric vehicles.