The UK government has just supercharged the electric vehicle (EV) market with the launch of the Electric Car Grant 2025, a bold move aimed at making EV ownership more affordable and accessible for thousands of drivers across the country.
What Is the Electric Car Grant?
Launched on 16th July 2025, the Electric Car Grant is a £650 million initiative designed to reduce the upfront cost of new electric vehicles. It’s part of the UK’s wider strategy to phase out new petrol and diesel cars by 2035 and accelerate the transition to zero-emission transport.
How Much Could You Save?
Eligible buyers can receive up to £3,750 off the purchase price of a new electric car, provided the vehicle costs £37,000 or less. The grant is structured in two tiers:
£3,750 for the most sustainably manufactured EVs
£1,500 for vehicles that meet baseline environmental criteria
This discount is applied at the point of purchase, making it easier than ever to go electric.
Who and What Qualifies?
To be eligible, vehicles must:
Be brand new and priced at £37,000 or under
Be zero-emission at the tailpipe
Have a minimum battery range of 100 miles
Come with a minimum 8-year battery warranty
Be manufactured by companies with verified science-based sustainability targets
There’s also a separate grant available for wheelchair-accessible vehicles (WAVs) priced under £50,000.
Electric Car Grant 2025: Why It Matters
Beyond the upfront savings, EV drivers can unlock up to £1,500 a year in running cost reductions thanks to lower fuel, tax, and maintenance expenses. The grant also supports UK-based manufacturers and helps drive investment in the EV charging infrastructure.
Why Now Is the Perfect Time to Go Electric
With the cost of living still a concern for many households, the Electric Car Grant 2025 offers a timely financial boost. Combined with lower running costs, zero road tax, and access to clean air zones, switching to electric is not just good for the planet, it’s great for your wallet too. Plus, with more models than ever qualifying for the grant, from compact city cars to family SUVs, there’s never been a better time to make the switch!