13-07-2025
Return of electric car grants could spark demand, industry says
The return of electric vehicle grants for motorists could be the 'firecracker' needed to increase demand, industry experts have admitted.
Ministers are poised to unveil a package of grants this week in an attempt to stimulate sluggish demand. It will include a £640 million grant scheme to reduce down payments on EVs.
It will be the first time since 2022 that ordinary buyers of EVs have been eligible for grants. At the time, Grant Shapps, the then transport secretary, said that the handouts were being withdrawn as they had 'successfully kickstarted the electric car market'.
However, sales of EVs to private buyers have been sluggish in recent years. Sales figures have been bolstered by commercial fleet buyers. Adoption of battery EVs by private buyers has fallen by 10.8 per cent so far this year, and fewer than one in five new battery cars go to private buyers.
