Government to offer Electric Car Grant: comment

Commenting on news that the Government is introducing a new £650m subsidy scheme to support the sale of new EVs, Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit (ECIU), said: 

“A quarter of all new cars sold last month were EVs with sales in the first half of 2025 35% higher than the first half of 2024. [1] This significant increase in sales is being helped along by the Government’s ZEV Mandate, which is sending prices down as manufacturers compete to hit their targets, all to the benefit of the British driver.

“New EVs become second hand cars after about three years, with the used EV market ever expanding and offering more families who buy cars second hand the chance to make savings of £1600 a year in running costs. [2]

“The UK car industry’s survival is based on a rapid transition to building the EVs to which the world is moving. CBI Economics found that our car industry, currently worth £46.8bn to the UK economy and employing over 550,000 full-time equivalent jobs, could see its economic output grow by £16bn, or 35%, and employ an additional 167,000 jobs, if it embraces the EV revolution. Conversely, go slow, and economic output could collapse by 73%, or £34bn, with over 400,000 jobs being lost. [3] This fund, together with other support for the industry recently announced by the Government, increases the likelihood of the positive scenario being secured”.

ENDS

Notes to editors:

[1] https://www.smmt.co.uk/bumper-june-for-uk-new-car-market-as-one-in-four-buyers-goes-electric/

[2] https://eciu.net/media/press-releases/2024/best-selling-second-hand-evs-saving-drivers-1-600-a-year

[3] https://www.cbi.org.uk/media/qoxp3pn4/cbi-economics-eciu-ev-sector-report-2024.pdf

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net