NFDA Welcomes New £650 Million Electric Car Grant: A Major Step Forward for Dealers, Consumers and the UK’s Green Transition

Following the Government’s announcement of new incentives to support the uptake of elective vehicles (EVs) Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), commented: “NFDA welcomes the Government’s action to boost the electric vehicle market. We have continuously called for urgent measures to incentivise EV uptake, including improving charging infrastructure and providing financial incentives such as the former plug-in grant.

The UK government is launching a £650 million Electric Car Grant (ECG) scheme to reduce electric car prices by up to £3,750 for eligible new electric vehicles priced at or below £37,000. Discounts will be available at the point of sale starting from 16 July 2025, with funding available until the 2028/29 financial year.

Sue Robinson added: “The Government has taken positive steps in building a constructive relationship with the automotive industry who have voiced concerns over the ZEV Mandate's ambitious targets.

In our response to the ZEV Mandate consultation, NFDA underscored the need for stronger incentives to boost consumer demand for electric vehicles. Our members are in the main EV ready, but they cannot sell EVs when so many are still perceived as representing poor value for money to the consumer. The ‘Cost of an EV’ has been consistently top of our surveys as to why a customer will not consider an EV. While this cost seems to be coming down, it is happening at a slower rate than the industry was hoping for. We have advocated for a return to an electric vehicle grant and called for improvements to inadequate charging infrastructure. It is vital that there is a coordinated and joined up approach to ensure that the transition to EVs is as consumer friendly as possible.”