Driving Change: Your Guide to the 2025 Electric Vehicle Government Grant
What is the 2025 Electric Car Grant?
The UK Government's new Electric Car Grant, backed by £650 million in funding until 2029, aims to significantly reduce the upfront cost of new electric vehicles, making EV ownership more accessible for private buyers.
At Group 1 Automotive, we are committed to helping our customers make the transition to electric driving as seamless and rewarding as possible. With the launch of the UK EV Grant 2025, there has never been a better time to consider making the switch.
Eligible brand-new, battery-electric vehicles with a list price of £37,000 or below may qualify for a discount. Unlike previous schemes, this grant introduces two tiers based on the environmental performance and manufacturing sustainability of the vehicle:
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£3,750 Grant: For vehicles that meet the highest sustainability standards, meaning their manufacturers have a verified Science-Based Target (SBT) for emissions reduction and low carbon emissions associated with battery and vehicle production.
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£1,500 Grant: For eligible vehicles that meet partial environmental criteria, still contributing to sustainable vehicle production.
The best part? Manufacturers apply the discount at the point of sale, so you can enjoy the savings instantly without the hassle of extra paperwork. Ready to go electric?
Who Qualifies for the Grant?
To meet the EV grant 2025 eligibility, a vehicle must be:
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A brand-new, battery-only electric car (plug-in hybrids and used vehicles are not eligible for this grant).
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Have a recommended retail price (RRP) of £37,000 or less. This RRP includes VAT and mandatory manufacturer/dealer extras like delivery charges.
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Meet the government’s sustainability criteria, specifically:
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The manufacturer must have a verified Science-Based Target (SBT) for reducing carbon emissions.
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The vehicle's production (battery and assembly) must meet specific carbon emission thresholds, which determines the £3,750 or £1,500 tier.
Important Note on Vehicle Eligibility: While the grant launches on July 16, 2025, specific eligible models are currently being assessed by the government. We anticipate an official list of qualifying vehicles and their respective grant tiers to be confirmed in the coming weeks/months. Please check back regularly or contact your local dealership for the latest updates.
Additional Support for Charging Infrastructure
The government is also making significant investments to bolster the UK's charging network and make EV ownership even easier:
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£25 million for local authorities to install under-pavement cabling, enabling home charging for those without driveways.
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£30 million to help businesses electrify their fleets and install depot charge points.
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£8 million to fund charger installations at over 200 NHS sites, supporting a greener health service.
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A target of 180,000 public charge points by 2029 has been set, a substantial increase from today's 82,000.
These initiatives are crucial for building consumer confidence and expanding convenient charging options across the UK.
Explore our guide to EV charging and home charging point installation to learn more.
Other Electric Vehicle Grants Still Available
While the Plug-in Car Grant for private buyers ended in 2022, other valuable incentives remain to help individuals and businesses make the switch:
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Workplace Charging Scheme: Businesses can receive up to £350 per socket for installing EV charge points at their premises.
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Home Charge Point Grants: Up to £350 available for flat owners and renters to help with the cost of installing a home charge point.
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Landlord Charging Grants: Support for landlords to install charging infrastructure in residential and commercial properties.
Ready to make the switch to electric? Contact your local Group 1 Automotive dealership today for the latest information on eligible models for the 2025 Electric Car Grant and to discuss our exciting EV offers.
Frequently Asked Questions:
The Electric Car Government Grant is a new EV grant UK scheme launched on July 16, 2025, providing a discount of up to £3,750 on new electric vehicles. Its purpose is to reduce the upfront cost of EVs, making them more accessible to buyers. The discount is applied directly by the manufacturer at the point of sale.
To be eligible for the electric car grant, vehicles must be brand-new, battery-only electric cars with a list price of £37,000 or less. They also need to meet specific government sustainability criteria, which include the manufacturer having a verified Science-Based Target for emissions reduction and the vehicle meeting carbon emission thresholds related to its production.
View our latest offers on EV cars that are eligible for the grant, here.
Simply by purchasing an eligible new battery-electric vehicle from a participating manufacturer or dealership. The vehicle must cost £37,000 or less and meet the government's sustainability standards. The discount is automatically applied to the purchase price, so you don't need to complete any additional paperwork yourself.
For more information on the scheme and available models, please contact your local dealership.
*Please note that not all cars displayed in this link are eligible for the Government EV Grant. To view only cars that are eligible, please click here.