Key takeaways:
- The UK will extend the Electric Car Grant and allocate £1.5bn to support EV adoption and charging infrastructure.
- EVs represented 26.5% of new car sales in August, with a 22.4% market share across the first ten months of the year.
- The ZEV mandate requires manufacturers to reach 28% zero-emission sales this year, rising to 80% by 2030.
The UK government plans to extend the Electric Car Grant for another year and has confirmed an additional £1.5bn to accelerate the country’s move toward electric vehicles, forming part of a broader Package for UK ev transition. Since the scheme’s launch in July, more than 35,000 motorists have already taken advantage of the support, which reduces the upfront price of an electric vehicle (EV) by as much as £3,750. This incentive has become a central lever in encouraging drivers to switch, and ministers view it as a necessary step in strengthening the wider Package for UK ev Transition.
During next week’s budget, the Labour Party is preparing to outline the next phase of funding, including a further £1.3bn earmarked for the Electric Car Grant. This will sit alongside £200m dedicated to speeding up the installation of thousands of charge points nationwide, bringing total public investment to £1.5bn. The government highlighted how uptake has accelerated: industry figures from the Society for Motor Manufacturers and Traders (SMMT) show that EVs accounted for 26.5% of all new car sales in August, while the technology represented a 22.4% share of the new car market over the first ten months of the year.
The regulatory push behind this momentum is also gaining strength. Under the zero emission vehicle (ZEV) mandate, manufacturers must ensure that at least 28% of their UK sales this year are zero emission, primarily pure electric models. The requirement will rise gradually until it reaches 80% in 2030, the same year the sale of new petrol- or diesel-only cars is set to be prohibited. According to the government, maintaining progress against these targets will require expanding infrastructure and improving accessibility for drivers across local communities.
As part of its latest commitments, the government said the proposed funding would help local authorities develop more charging options on residential streets and other public areas. It also confirmed that the cost of public charging will be reviewed in response to rising prices. “The government is fully committed to the transition to electric vehicles, which is key to meeting our net zero goals and will drive growth and productivity across the UK,” it said.
