Against a backdrop of sluggish electric car sales, the UK government announced on 14 July 2025 the return of a scheme to support the purchase of electric cars by private individuals. The scheme will come into effect on 16 July 2025. The aim is to revive flagging sales momentum, while the UK is still aiming to ban the sale of new combustion-powered cars by 2035.
A bonus of up to £3,750 for the « greenest » vehicles
The £650 million (approx. €750 million) scheme will enable buyers of 100% electric vehicles costing up to £37,000 (approx. €43,000) to benefit from a purchase discount. This can be as much as £3,750 (around €4,500) for models deemed to be the « greenest », with optimised emissions and energy efficiency levels.
Less ‘virtuous’ but still eligible vehicles will be eligible for a more modest bonus of up to £1,500 (€1,755). The aid will be paid directly to the dealer, reducing the cost to the consumer.
A response to market stagnation
This aid reflects a worrying situation: after sustained growth between 2020 and 2023, sales of electric vehicles in the UK are stalling. According to the Society of Motor Manufacturers and Traders (SMMT), private customers will account for just 40% of EV sales in 2025, compared with 55% in 2022. Business fleets now dominate the market.
In addition to its other measures, the government intends to boost private demand by investing a further £63 million in developing the network of charging points, particularly in rural and peri-urban areas.
A return to subsidies… two years after they were abolished
Until June 2022, the UK already offered a plug-in grant of £1,500. This was abruptly withdrawn in the name of « sufficient market maturity », according to the authorities at the time. The reality is quite different: the transition to electric cars is still fragile and consumers are struggling to take the plunge, not least because of the still high price of new models. This revival of subsidies, welcomed by many players in the sector, marks a pragmatic U-turn. It remains to be seen whether it will be enough to convince private customers to electrify their garages.
