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Electric Car Grant reaches 140,000 drivers in first year

The Government said more than 140,000 drivers have switched to an EV through the Electric Car Grant since launch, with 58 models now eligible for support.

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Electric Car Grant reaches 140,000 drivers in first year
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The Government’s Electric Car Grant has supported more than 140,000 drivers in its first year.

The £2bn scheme offers drivers up to £3,750 off the cost of a new electric vehicle.

The Government said demand for EVs remains strong, with March 2025 recording the highest EV sales volume on record and sales up 35% compared with June last year.

It said the grant had helped tackle one of the main barriers to EV adoption by reducing the upfront cost of switching.

Recent figures from Autotrader show electric cars are now cheaper to buy, on average, than petrol models for the first time.

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The Government said EV drivers who can charge at home could save up to £1,400 by using cheaper home charging, particularly against the backdrop of high and fluctuating fuel prices.

The number of eligible models has grown to 58, including the Nissan Leaf, Ford Puma Gen-E and Skoda Elroq.

The Government said the scheme was also supporting British manufacturing, with Nissan’s new Leaf being built at its Sunderland plant by a 6,000-strong workforce.

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It said £7.5bn is being invested to support the transition, grow the EV market, boost manufacturing, increase sales and expand the UK charging network.

An additional £600m was announced last year to support the rollout of more chargers, building on more than 120,000 already available.

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Keir Mather, aviation, maritime and decarbonisation minister, said: “In just one year, our Electric Car Grant has helped over 140,000 drivers save up to £3,750 on a new EV, and with nearly one in three cars sold now electric and sales up 35%, demand is stronger than ever and only going in one direction.

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“We’ve made it easier and cheaper than ever before to go electric, and with savings of up to £1,400 on running costs there’s never been a better time to make the switch, especially against the backdrop of global fuel price fluctuations.”

Simon Williams, head of policy at the RAC, said: “The reintroduction of the Electric Car Grant is something we’d been calling for, so it’s great to see it making such a positive difference to EV sales in its first year.

“The high upfront cost of a new EV has long been the biggest obstacle in the way of wider adoption. With 58 models now qualifying for the discount drivers have more choice than ever at varying price points.

“And, of course, every new vehicle that comes on to the road will at some point feed through to the second-hand market enabling those drivers who don’t buy new to go electric too.”

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John Veichmanis, chief executive at Carwow Group, said: “A year on, the direction of travel is clearly positive – our data shows EVs now account for 34% of car-buying enquiries on Carwow, up from 24% before the grant landed.

“Add in fuel prices that remain volatile and the growing cost advantage of charging at home, and it’s easy to see why more drivers are making the switch.”

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