As more details are revealed and more people begin to understand all of the ramifications of the UK Government’s Electric Car Grant. Firstly, the list of car eligible for the two tiers of payments will be confirmed on 11 August 2025. The scheme went live on 16 July 2025. Click here to read an Autocar article on this.
Secondly, car companies can self-register cars for the scheme and as the rules include Fleet registrations, this opens up the ability for abuse. Whilst these cars contributed to the Zero Emission Vehicle mandate, now tax payer’s money will be used to support car companies to be compliant. Click this link here to read more on that from Autocar.
There are some suggesting that the overall scheme will have little affect, as was discussed on the show last week. Indicata, a motoring related data firm, has calculated that the grant will affect only 5.8% or 14.4% of new car registrations, dependent on which tier is sought. They also have used information from Italy’s attempt as a similar scheme that made a small impact. On top of all that they highlight the danger of dramatic depreciation for newly bought vehicles and those outside of the eligibility of the scheme. Click this link to read more from a Motor Trader article.
Some manufacturers are forging ahead and offering discounts on their cars at the same rate as the lower tier of the grant. The likes of Alfa Romeo, GWM, Hyundai, Leapmotor, MG and Volvo have already made their move. Click this AutoTrader article for more.
Another issued raised was that the scheme ignores the used market. The Independent Motor Dealers Association (IMDA) has called for a £1000 grant for used EVs. Click this Motor Trader article link here to read more.
The UK Government first brought up, what it felt, was the unfair practice of Employee Car Ownership Schemes back in the autumn. This is where a member of staff gets a new car, for a short period of time and then moves onto a new car, whilst paying a much reduced contribution that anyone outside of the scheme would. Proposed legislation will mean anyone taking advantage of such a scheme will be taxed as though that was a company car. To read more, click this Motor Trader article link here.
VW financial results for the first half of 2025 show a drop of 29%, with a big hit in Q2 thanks to the US tariffs. Both the profit and revenue was down on market expectations. If you want to find out more,
