Announced as part of the UK Government’s £650 million investment, the Electric Car Grant aims to reduce the upfront cost of new electric vehicles priced at £37,000 or below. Manufacturers can apply to include qualifying models in the scheme from 16 July 2025, with discounts being applied directly at the point of sale — meaning customers will see reduced prices in showrooms without needing to complete any paperwork themselves.
The grant will run through to the 2028/29 financial year, helping bridge the cost gap between petrol and electric vehicles while aligning with the government's Plan for Change, which includes the phase-out of new petrol and diesel cars by 2030.
Substantial Savings: Eligible new electric cars could be discounted by up to £3,750, depending on the vehicle’s sustainability and production criteria.
Lower Running Costs: In addition to the upfront discount, EV drivers can expect to save up to £1,500 annually in fuel and maintenance compared to traditional petrol vehicles.
No Additional Paperwork: The discount is applied directly by the manufacturer and dealer — there is no need for customers to apply.
This initiative is supported by continued investment in the UK’s EV charging infrastructure. There are now over 82,000 public charge points nationwide — with new units being installed approximately every 30 minutes — ensuring drivers have access to convenient charging whether at home, at work, or on the go.
The government is also investing an additional £63 million to expand home charging access, especially for households without private driveways, and to support the electrification of NHS fleets and business depots.
Eligibility for the grant will depend on vehicles meeting the highest standards for sustainable manufacturing. This ensures that the most environmentally conscious models receive the greatest incentives, helping customers choose vehicles that are not only cost-effective but also have a lower overall environmental impact.
This measure aligns with the broader Zero Emission Vehicle (ZEV) Mandate, which requires manufacturers to increase the proportion of zero-emission vehicles in their sales mix over the coming years.
Eligible electric vehicles are expected to begin appearing in dealerships within weeks, offering customers a wider and more affordable range of options. A full list of approved models is expected to be released soon by the Department for Transport.
At John Clark Motor Group, we welcome this announcement as a positive move for both drivers and the wider automotive industry. We are committed to supporting sustainable mobility, and will be ready to assist our customers in understanding how they can benefit from the Electric Car Grant and make a smooth transition to electric driving.
For more information or to register your interest in our upcoming electric vehicle offers, please contact your nearest John Clark dealership today.
