The Government’s Electric Car Grant (ECG) has successfully funded the transition of over 140,000 drivers to electric vehicles during its first year, according to figures released to mark the anniversary of the scheme.
The range of grant-eligible models continues to grow and includes some of the UK’s best-loved brands
The Department for Transport’s £2bn initiative offers buyers up to £3,750 off the purchase price of a new electric car. It has successfully targeted upfront cost, which industry experts previously flagged as the primary barrier to mass adoption.
Electric vehicles now make up nearly one in three (30%) new car sales, helped by the fact that electric cars are now cheaper to buy, on average, than petrol models for the first time, according to recent figures from Autotrader.
Drivers shifting to electric stand to save up to £1,400 annually by using cheaper overnight home charging rates. This saving provides a buffer against volatile petrol and diesel prices driven by the ongoing conflict in the Middle East.
At the same time, the range of grant-eligible models continues to grow with 58 models now available from some of the UK’s best-loved brands. This includes the Nissan Leaf, which is built at the brand’s Sunderland plant by its 6,000-strong workforce. As such, the grant scheme directly supports British manufacturing, while bolstering jobs and growth in the North East.
The transition is backed by a wider £7.5bn government investment package. This includes £600m allocated last year to expand charging infrastructure. The UK public network now boasts over 121,000 chargers, outnumbering traditional fuel pumps nearly two to one.
Decarbonisation Minister Keir Mather 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.
“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.”
RAC head of policy Simon Williams 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.”
