Dramatic rise in electric vehicle uptake driven by UK Electric car grant

Plug-in cars account for nearly two in every five (35.5%) of September's new car registrations, with the Society of Motor Manufacturers and Traders (SMMT) recording the strongest plate-change September since 2020 at 312,687 units.  

Battery electric vehicles (BEVs) accounted for nearly one in four (23.3%) registrations, while plug-in hybrid (PHEV) demand rose most rapidly to account for one in 10 (12.2%) of the market, according to SMMT data.   

At the close of the third quarter, 2025's new car market is up 4.2% at 1.58 million units. Zero-emission vehicles comprise more than 22.1% of these new cars registered so far in 2025, and three-quarters of these are in the fleet and business sectors. 

This dramatic rise in electric vehicle (EV) uptake is largely driven by the UK government’s new Electric Car Grant, an initiative designed to make EVs more affordable and accessible for buyers. 

How the UK government grant drives EV uptake 

The UK government launched a generous £650 million Electric Car Grant scheme in mid-2025 that offers up to £3,750 off new, eligible electric vehicles priced under £37,000. Unlike previous schemes, the discount is applied automatically at the dealership when purchasing qualifying EVs, making it seamless and instantly attractive to buyers. 

Why this is important for car dealerships and consumers 

The grant effectively lowers the upfront cost of new EVs, addressing one of the biggest barriers to switching from petrol or diesel cars. 

It targets eco-friendly vehicles that meet strict sustainability criteria, encouraging manufacturers to produce greener models and consumers to buy them. 

The subsidy works alongside popular salary sacrifice schemes, creating combined savings that reduce monthly vehicle costs by around 10% or more in some cases. 

By making EVs price-competitive with conventional cars, the grant stimulates demand and supports the industry’s transition to zero-emission vehicles ahead of the 2030 petrol/diesel ban. 

Car dealerships play a crucial role by informing customers about the grant and making eligible electric models accessible. The government’s streamlined grant process ensures a simple buying experience, removing friction for customers interested in EVs. 

Overall, the government’s EV grant has proven to be a powerful incentive, significantly boosting new plug-in car registrations and accelerating the shift towards cleaner, greener driving in the UK.