EV sales soar as UK drivers turn to Electric Car Grant

Over 140,000 UK motorists have taken advantage of the government's Electric Car Grant in its first year, according to the Department for Transport. Launched on 16 July last year with £2 billion in funding, the scheme provides discounts of either £1,500 or £3,750 on new electric vehicle (EV) purchases, depending on the vehicle's sustainability credentials. The initiative aims to address the high upfront cost of EVs, which has historically been a major deterrent for potential buyers. Data from the online vehicle marketplace Autotrader shows that new electric cars are now more affordable than comparable petrol models. Meanwhile, the Society of Motor Manufacturers and Traders reports a 35 per cent increase in registrations of pure battery electric new cars in June compared to the same month last year. Their market share has risen from nearly 25 per cent to 30 per cent, reflecting growing consumer interest in electric vehicles. Drivers who qualify for the Electric Car Grant can choose between two discount levels, with the amount determined by the vehicle's sustainability criteria. Decarbonisation minister Keir Mather noted that demand for EVs is stronger than ever, emphasizing that the trend is moving in one direction. He highlighted the financial benefits of switching to electric vehicles, noting annual savings of up to £1,400 on running costs, particularly amid fluctuating global fuel prices. Simon Williams, head of policy at the RAC, praised the grant for significantly boosting EV sales in its first year. He pointed out that the high initial cost of new EVs had long been a barrier to widespread adoption. With 58 models now eligible for the discount, drivers have access to a broader range of options at different price points. The government has also announced plans to introduce a new pay-per-mile scheme for electric vehicles starting in April 2028. Under this system, drivers of fully electric cars will be charged 3p per mile, while owners of plug-in hybrids will pay 1.5p per mile. Both rates remain lower than the current 6p per mile paid by petrol and diesel vehicle drivers through fuel duty. The new eVED (electric vehicle excise duty) system will calculate an upfront charge based on estimated driver mileage. Motorists will have the option to spread this cost through monthly payments, similar to the existing Vehicle Excise Duty structure. At the end of each year, drivers must provide their actual mileage readings, which will be compared with mileage recorded during the car’s annual MOT or, for newer vehicles, around their second or third registration anniversary. Any unpaid balance will need to be settled, or drivers can opt to extend the payment period over the following 12 months.