The motoring industry has praised Labour for introducing the new Electric Car Grant, which could help millions of people access funding for new zero emission vehicles.
Through the new Electric Car Grant, drivers can access up to £3,750 in funding towards the list price of a new EV, as part of a larger £650million investment from the Government
The £3,750 discount will be available at the point of sale for new electric cars priced at £37,000 or under, as the Government continues to push for drivers to ditch their petrol and diesel cars.
The new Electric Car Grant is the Government's latest move to support drivers in accessing EVs after the previous Conservative Government cut the Plug-in Car Grant in 2022.
Do you have a story you'd like to share? Get in touch by emailing motoring@gbnews.uk
GETTY/PA
|The new Electric Car Grant has been met with praise from industry experts for helping more drivers access EVs
While electric cars are becoming more common on the road, there are still some concerns that the UK may fail to meet its own net zero targets.
In June, one in four new cars sold were electric, with the market share of petrol and diesel vehicles continuing to fall. Despite this, experts say more needs to be done to achieve the electric revolution.
As part of the world-leading Zero Emission Vehicle (ZEV) mandate, manufacturers need at least 28 per cent of total sales to be electric by the end of this year.
These targets will continue to increase over the coming years, reaching 80 per cent by the end of the decade and 100 per cent by 2035, at which point, all vehicle sales will be zero emission.
READ MORE: Electric car owners to save £1,500 every year with new support for 'innovative' home charging scheme
Reacting to the announcement of the new grant scheme, Ginny Buckley, chief executive of Electrifying.com, said: "Nearly one in two new electric models are now more affordable thanks to these long-overdue incentives.
"Crucially, the support is aimed exactly where it’s needed most: from school-run staples to budget-friendly runarounds, the grants apply to cars that fit the needs of everyday drivers."
She also highlighted recent research from Electrifying.com, which found that 76 per cent of Britons still see the upfront cost of an EV as the biggest barrier to making the transition.
The announcement of the Electric Car Grant comes at a time when the cost of new electric cars are already falling, with many models available for less than £40,000.
LATEST DEVELOPMENTS:
- Motorists to see costs of electric cars slashed as new grant offers lifeline to millions - 'Biggest savings'
- Drivers at risk of penalties and police charges as major fraud practice causes 'nightmare' for thousands
- M6 chaos: Motorists warned of hours of delays on major motorway as road collision causes severe problems
Many of the world's largest manufacturers have already spoken about launching a model which could cost less than £25,000 or even £20,000 in the coming years.
Alongside falling manufacturing costs of electric vehicles, automakers are feeling the pressure from Chinese brands, which are delivering cheap EVs with impressive battery ranges and technology for lower prices than established brands.
This was highlighted by Andy Palmer, founder of Palmer Energy Technology Ltd (PETL), who said the incentives being introduced were "meaningful" and will help electric vehicles reach price parity with equivalent petrol and diesel models.
He added: "It is then incumbent on the car OEMs to use the volume hike to yield cost reduction to ultimately negate the need for incentives.
PA | Drivers can receive up to £3,750 off the price of a new electric car with a list price of less than £37,000
"We've seen this being done very successfully in China, where price parity is already achieved, and EV market share is already circa 50 per cent."
Estimates from the Department for Transport suggest that drivers can save up to £1,500 when switching from a petrol car to an EV thanks to fuel and cheaper running costs.
Dan Caesar, CEO, Electric Vehicles UK, said: "A target incentive program is a significant step forward in encouraging consumers to buy battery electric vehicles, and to make them more accessible.
"While battery-only EVs are much cheaper to buy and run than most realise, surveys show that cost misperceptions are the primary reason for hesitance.
"A generous grant of this nature gives a new group of interested buyers, that might have thought that going electric was beyond them, a gentle nudge into what is great tech. More than nine out of 10 battery EV drivers will never revert, and there’s a reason for that."