Demands for electric car grants to return with 'perfect opportunity' to ditch petrol and diesel

Rishi Sunak Visits Land Rover Electric Car Battery Factory

Experts are calling on the Government to reintroduce EV grants

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Felix Reeves

By Felix Reeves


Published: 07/10/2023

- 11:00

The Plug-in Car Grant was pulled in June 2022 to divert investment into the charging network and other EVs

Motoring groups are calling on the Government to reintroduce a grant scheme to support drivers in the switch to electric vehicles.

The latest data from the Society of Motor Manufacturers and Traders (SMMT) found that battery electric vehicles recorded a 41st consecutive month of growth.


However, the market share of BEVs decreased compared to a year ago, from 16.9 per cent down to 16.6 per cent this year.

Rod Dennis, spokesperson for the RAC, said the UK is still on track to have one million zero emission vehicles registered from new by the end of the year.

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This is thanks to a “record-breaking” September, with the market growing by an impressive 38 per cent over the last year.

Despite the positive sales outlook, millions of drivers are still looking for the upfront cost of electric cars to drop before they make the switch.

The majority of electric cars still come with an initial cover price of £30,000, while similar petrol or diesel vehicles can be far cheaper than that.

Rod Dennis added: “With RAC research showing more drivers expect to keep their current vehicles for longer due to the cost-of-living crisis, we believe it’s vital the Government shows its commitment to zero-emission driving and doing its bit to sustain demand by stimulating the less expensive end of new electric car market.

“A refreshed plug-in car grant would go a long way towards helping more drivers afford to be able to switch to electric cars sooner, so we urge the Chancellor to consider such a measure ahead of next month’s Autumn Statement.

“We hope last month’s slight softening in new battery electric registrations is just a blip and not a harbinger of things to come.”

The Government made the decision to end the Plug-in Car Grant in June 2022 after “successfully kickstarting the UK’s electric car revolution”.

It had increased sales of electric vehicles from less than 1,000 in 2011 to almost 100,000 in the first five months of 2022.

It was announced that the Government would end funding for the electric car transition by focusing the money on other services like the charging network and other electric vehicles.

Around £300million in funding was made available for plug-in taxis, motorcycles, vans, trucks and wheelchair accessible vehicles.

Mike Hawes, chief executive of the SMMT, supported the call for more incentives for drivers, saying: “With tougher EV targets for manufacturers coming into force next year, we need to accelerate the transition, encouraging all motorists to make the switch.

“This means adding carrots to the stick – creating private purchase incentives aligned with business benefits, equalising on-street charging VAT with off-street domestic rates and mandating chargepoint rollout in line with how electric vehicle sales are now to be dictated.

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Electric taxi

The Plug-in Car Grant was removed to support the uptake of other electric vehicles

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“The forthcoming Autumn Statement is the perfect opportunity to create the conditions that will deliver the zero emission mobility essential to our shared net zero ambition.”

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