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What's the impact on your New EV with the launch of the new Electric Car Grants
For a Government which has been a little back and forth when it comes to electric cars, and electrification of our transport / infrastructure in general, we begin today (15 July 2025) with some hitting news - “Discount of up to £3,750 on electric cars set to slash costs for thousands”.
As part of the Plan for Change, which is a milestone mission-led approach from the Labour Government, the world of electric cars is about to get significantly cheaper for those customers choosing a cheaper model.
As at Wednesday 16 July 2025, electric car manufacturers can apply for the Electric Car Grant for any new EV which is priced at (or under) £37,000. This ECG will reduce the cost of the vehicle by up to £3,750. And with £650 million in a grant scheme pot, the Government are aiming for this funding to run into the 2028-2029 financial year.
When does the ECG apply?
Essentially the car manufacturer can apply for the additional £3,750 grant from tomorrow (16 July 2025) via their online system. This means that any new, and unregistered, EVs can be reduced in price immediately (discounts range from £1,500 - £3,750 under the scheme). As the report highlights, the cost of owning / leasing an EV is becoming cheaper as economies of scale kick in.
2 in every 5 EVs are sold at £20,000 (or under) and there are now over 30 models of EVs which are available from under £30,000. In addition, the article also denotes the cost-savings involved in going into an electric car with fuel savings (compared to petrol / diesel) and the lower servicing and maintenance costs.
This is the latest round of cost-reduction measures and showcasing the true benefits and advantages for ditching combustion vehicles in favour of the BEVs. As noted in the BBC this is seen as welcome news for helping drivers to make the transition into zero-emission vehicles by 2030. However, the article in the BBC also goes on to note that it isn’t just price of the vehicle which is an obstacle; charging facilities in the public network are also under question. As the UK hits 82,000 public charge points, the Governmental targets of 300,000 by 2030 can only be realised if more support (financial or otherwise) is offered from the top-down.
While more good news is coming out with regards to charging without a driveway (something we will discuss later this week) it will be interesting to see what else the Government will be doing to substantiate the success of electric cars and vans in the UK.
For more information on the ECG, just head to the Office for Zero Emissions which will set out the rules, criteria and qualifying points. Historically this was handled under the Low-Emission Plug-In Grant section of the UK Gov website, but we are still awaiting the full details to disseminate to our customers. So far it seems to be based on:
What we will now see in the UK is a growing list of all-electric vehicles which are below the £37,000 threshold. While June 2025 was immensely popular for zero-emission options, contributing to nearly 25% of the registrations, we are all aware that mass-adoption is centred around those customers on the periphery who need that little bit extra to progress.
The latest SUV EV from Suzuki launched at the end of June 2025 will be the first real push into the UK leasing market from the Japanese automotive brand. Known for cost-effective and affordable solutions, the launching of the new electric Vitara is well timed as the UK Government proffers its support .
The ”striking SUV” is aiming to bring style, packed technology and electrifying performance to UK customers. The Vitara will be launching with two key specifications including:
Colours include Arctic White Pearl, Celestial Blue, Land Breeze Green, Grandeur Grey, Splendid Silver and Bluish Black. When you upgrade to the Ultra you can elect to utilise the colour contrast roof. For more information you can head to the Suzuki website.
There will be 3 battery configurations including:
Head to the Suzuki brand website to build your perfect option or just get in touch with our expert team on 01942 910 001 or by emailing us at [email protected]
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