Which Electric Cars Will Qualify for the UK’s New Grant? Here’s What Buyers Need to Know
If you’re eyeing an electric car in the UK, there’s some big news on the horizon. The government’s new Electric Car Grant (ECG) is about to shake up the market, and buyers are eager to know which models will actually qualify. So, what’s changing, and how might it affect your next car purchase? Let’s break it down in plain English.
What Is the New Electric Car Grant, and Who Can Get It?
The ECG is the UK government’s latest move to make electric vehicles (EVs) more affordable. Starting August 11, a list will be published showing exactly which cars are eligible. The grant comes in two flavors: £1500 or £3750 off the price of a new EV, depending on the model.
But there’s a catch—or a few, actually. To qualify, a car must cost less than £37,000. That price cap alone rules out about half the EVs currently on sale. But the criteria don’t stop there. The government is also looking at the emissions created during manufacturing and where the car is built. In other words, it’s not just about what comes out of the tailpipe, but the whole environmental footprint.
How Many Electric Cars Will Actually Qualify?
According to Mike Hawes, head of the Society of Motor Manufacturers and Traders (SMMT), about a third of the electric cars on the UK market are expected to meet the new grant’s requirements. If you focus on brands with models under the £37,000 threshold, roughly two-thirds of those ranges could be eligible.
This means that if you’re shopping for an affordable EV, your options are about to get a little sweeter. But if you’ve had your eye on a pricier model, you might be out of luck—at least when it comes to this particular incentive.
Why Are Some EVs and Manufacturers Left Out?
It’s not just about price. The government’s criteria also consider where the car is made and how green the manufacturing process is. That means some popular models from South Korea and China might not make the cut, even if they’re affordable.
The intention, according to Hawes, isn’t to punish any particular region or brand. Instead, the goal is to reward manufacturers that are making broader sustainability efforts—not just building zero-emission cars, but also reducing the environmental impact of their factories.
Still, this approach has sparked debate. Some industry insiders worry that splitting the market this way could make it harder for certain brands to comply with the UK’s zero-emission vehicle (ZEV) mandate, which requires a growing share of new cars sold to be electric.
Will the Grant Really Make EVs More Accessible?
In theory, yes. Any financial incentive helps, especially as the cost of living continues to squeeze household budgets. But there’s a wrinkle: the SMMT had actually been pushing for a VAT cut on EVs, arguing that it would provide broader and more targeted support to private buyers.
Another point of contention is that the grant is also available to business buyers, who already benefit from favorable tax rates on electric company cars. Some critics argue that this could dilute the impact for everyday drivers who need the most help making the switch.
What About Local Manufacturing and the UK’s Auto Industry?
The government has signaled that it wants to support local manufacturing where possible. But don’t expect the ECG to spark a wave of new factories overnight. Hawes points out that the grant’s £650 million budget is likely to be spent long before any new production lines could be set up.
That said, the grant could still give a boost to UK-based manufacturers who already meet the criteria. It’s a nudge in the right direction, even if it’s not a game-changer for the industry as a whole.
Could This Grant Change the EV Market in the UK?
Absolutely. Even with its limitations, the ECG is likely to shift the market. Car makers can register demonstrator and staff vehicles to receive the grant, but the government has promised to monitor the scheme closely to ensure the benefits reach real buyers.
The big question is whether the grant will attract new EV buyers, rather than just encouraging existing owners to upgrade. If it does, it could help the UK hit its ambitious targets for electric vehicle adoption.
Is the Charging Infrastructure Ready for More EVs?
Here’s where things get tricky. More EVs on the road means more demand for charging stations. The UK has made progress, but many drivers still worry about finding a charger when they need one. The ECG could accelerate demand, so investment in charging infrastructure will need to keep pace.
According to a 2023 report from the Department for Transport, the UK had over 53,000 public charging points as of early 2024, but experts say the country will need at least 300,000 by 2030 to meet demand. If you’re thinking about going electric, it’s worth checking the charging options in your area.
What Should Buyers Do Next?
If you’re considering an EV, keep an eye out for the official list of qualifying models on August 11. Don’t just look at the sticker price—think about your charging needs, the manufacturer’s reputation, and the long-term running costs.
And remember, incentives like the ECG can make a real difference, but they’re just one piece of the puzzle. The EV market is evolving fast, and the smartest buyers are those who do their homework and act quickly when the right deal comes along.
The Bottom Line for UK EV Shoppers
The new Electric Car Grant is set to make a splash, especially for buyers looking at affordable, sustainably produced EVs. While not every model will qualify, and some brands may feel left out, the move signals a clear commitment to greener transport. If you’ve been waiting for the right moment to make the switch, this could be it—just be sure to check the details and move fast once the eligible models are announced. The road to electric is opening up, and for many, it’s about to get a little smoother.