On July 15, the British Transport Secretary announced a total of £650 millionElectric vehicleSubsidy program covering dozens of new electric vehicles.As“Change plan”An important part of theThe EV subsidy scheme will subsidize up to £3,750 per eligible car and aims to ease the financial burden on working people and help thousands of families own an electric car.
Image source: SMMT
In line with its commitment to phase out sales of new petrol and diesel vehicles by 2030, the £650 million EV subsidy scheme will support local and overseas manufacturers in the UK and require companies to meet the highest sustainable manufacturing standards. Consumers can enjoy an instant discount of up to £3,750 on a compliant new electric vehicle priced at £37,000 or more.
From July 16, 2025, car owners will be able to enjoy a discount on their car purchase if they successfully apply for a subsidy scheme for a zero-emission model. The program’s pool will last from fiscal year 2028 to fiscal year 2029.
In response to the general indication by car owners that high upfront costs pose a barrier to adoption, the subsidy scheme will significantly reduce the upfront purchase price difference between electric and fuel vehicles, saving thousands of car owners up to £1,500 per year in fuel and maintenance costs (compared to fuel vehicles). The subsidy means that the cost of purchasing and using zero-emission vehicles has been reduced to an all-time low, and the existing tax incentives have brought tangible savings to working families.
It is worth noting that the cost of purchasing and holding electric vehicles continues to fall: two-fifths of used electric vehicles in the UK market are currently priced below £20,000, while the price of 33 new electric models has fallen below £30,000.
The UK government is committed to protecting the rights of motorists, and this latest investment is a core part of its strategy to support motor vehicle owners, including a record £1.6 billion earmarked funding to repair potholes on roads. freeze the 5p per litre fuel tax policy until spring 2026; It is expected to save the average car owner between £50 and £60 throughout the year.
The latest plan continues the UK government’s £63 million investment package to provide home charging support for households without private parking; Promote the electrification transformation of the UK’s National Health Service (NHS) fleet; Thousands of new warehouses across the UKCharging piles。
The UK government is fully accelerating the transition to electric vehicles through a comprehensive investment plan totaling £4.5 billion. This move will strengthen the UK’s position as the world’s leading country in the adoption of electric vehicles, while effectively reducing the cost of using a car for people. As of now, the UK has established itself as a global benchmark in the zero-emission driving transition – its electric vehicle market size will rank first in Europe in 2024, with annual sales increasing by 20% year-on-year.
Other than thatThe British Association of Car Manufacturers and Traders (SMMTIn the first half of this year, the number of registrations of pure electric vehicles in the UK increased year-on-year, according to data34.6%reach224,841, driving the market share of pure electric vehicles to reach21.6%，ButStill lower than the requirements of UK market regulations28%。Industry leaders agree that financial incentives for private purchases of BEVs are the most critical move to boost demand for BEVs, boost economic growth and strengthen the foundation of the UK’s automotive manufacturing sector.
At the same time, the latest data shows that the number of public charging piles in the UK has exceeded 82,000, with an average of one added every 30 minutes, providing drivers with peace of mind and ensuring that they can charge conveniently at home, at work or on long journeys.
The new policy in the UK coincides with the zero-emission vehicle mandate, which requires automakers to increase the proportion of zero-emission vehicle sales year by year. In the face of recent global economic fluctuations, the British government has adjusted the ban on fuel vehicles through key trade agreements with the United States, India and the European Union, and in line with industry demands. This move provides much-needed policy certainty, stability and support for the automotive industry.