Some of the most popular manufacturers selling in the UK have reacted to Labour's new Electric Car Grant, saying it will help more Britons adapt to the changes.
A new £650million fund has been made available through the Electric Car Grant that will help drivers save £3,750 off the price of a new EV under £37,000.
Manufacturers will be able to apply through the ECG, with the Government saying the scheme will speed up access and cut costs for drivers and businesses.
Companies will be able to offer the discounts to manufacturers as soon as they successfully apply from tomorrow, Wednesday, July 16, 2025.
Do you have a story you'd like to share? Get in touch by emailing motoring@gbnews.uk
GETTY/FORD
|The UK boss of Ford said the best-selling Puma Gen-E would be even more affordable with the grant
Transport Secretary Heidi Alexander said more needed to be done to help motorists embrace electric vehicles, prompting the new grant scheme.
Matt Galvin, managing director of Polestar UK, described the reintroduction of an electric vehicle grant scheme as a "real positive step forwards".
He added: "We welcome the Government's focus on encouraging the uptake of electric cars and in turn reducing tailpipe emissions on Britain’s roads and these grants will provide encouragement to go electric.
"While Polestar operates in the premium luxury market, the company was founded on accelerating the shift to sustainable mobility and this is more about doing the right thing for the planet and the next generation."
READ MORE: Electric car grant hailed as a 'significant step forward' as drivers could save £3,750 on new EVs
The previous Conservative Government scrapped the Plug-in Car Grant for motorists in June 2022, although separate grants for wheelchair accessible vehicles, motorcycles, vans, trucks and taxis.
Lisa Brankin, Chair and managing director of Ford UK, echoed the calls of the Polestar boss, saying the funding would boost the number of electric vehicles on the road.
She specifically pointed to the Ford Puma, which is the best-selling car in the UK. She stated that with the new grant, the all-electric Puma Gen-E would be "even more affordable".
This can be paired with the Ford Power Promise, which provides new electric vehicle customers with a free EV home charger and up to 10,000 miles of charging credit on the Intelligent Octopus Go tariff.
LATEST DEVELOPMENTS:
Brankin continued, saying: "Today's confirmation of customer grants - reducing the cost of sub-£37k electric cars by up to £3,750 - is great news for UK drivers and will make purchasing an electric vehicle much more affordable.
"Ford applauds the UK Government for taking this step. We have been on the frontline of the conversation, highlighting the urgent need for consumer-based incentives for electric vehicles, and now they have arrived."
In June, one in four new cars sold in the UK were electric, according to the Society of Motor Manufacturers and Traders (SMMT), with experts hoping the new scheme will boost uptake even further.
Calum James, General Manager of Farizon UK, also said that the Electric Car Grant was "welcome", adding that it was "great for society".
POLESTAR | Polestar's UK boss said the grant was a 'real positive step forwards'
Farizon sells the popular SV van, which qualifies for the Government's existing Plug-in Van Grant, allowing motorists to save up to £5,000.
James added: "What's imperative is that the investment is directed to where it will make the biggest material impact, and to ensure that takes place, I hope the industry - business operators, retailers and van manufacturers alike - will have their voices heard early on in this process.
"Straightforward subsidies and incentives that make van purchases easier for businesses will be welcomed, of course, but that's only part of the story.
"We need to remove the delays in the planning processes to unlock rapid expansion in the charging infrastructure, for example."