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New Electric Car Grant Criteria Set for August 11 Announcement

UK government will reveal which electric vehicles qualify for new grants on August 11.

July 24, 2025 at 06:24 AM

EVs eligible for new £3750 grant to be confirmed on 11 August

The UK government reveals upcoming changes to the Electric Car Grant program.

New Electric Car Grant Criteria Announced for UK Market

Car buyers in the UK will discover which electric vehicles qualify for a new government grant on August 11. Mike Hawes, head of the Society of Motor Manufacturers and Traders, confirmed that the criteria will feature a £37,000 price cap along with sustainability targets linked to emissions and manufacturing locations. Early estimates suggest that about a third of electric models on the market will be eligible, as part of a new strategy that bands grants at either £1500 or £3750. However, Hawes expressed concern that the automotive industry was not consulted on these new rules, highlighting that while the support is helpful, it may leave out certain manufacturers.

Key Takeaways

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Expected announcement of eligible EV models on August 11

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New grant program features a £37,000 price cap

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Around one third of current electric cars likely to qualify

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Grants will be banded at £1500 or £3750 depending on criteria

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Lack of consultation may lead to challenges for the automotive sector

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Concerns raised about the sustainability goals and regional impacts

"Any support is the right thing but it will help some but not all OEMs."

Mike Hawes highlights the support's limitations for manufacturers.

"We understand the ambition, but there is a lack of clarity."

Hawes comments on the unclear aspects of the grant criteria.

"The government has said it will look to support local manufacturing if possible."

Hawes notes the government's intent to prioritize local production in the ECG.

The impending announcement of qualifying models comes at a crucial time for the UK's automotive sector, grappling with local production and foreign competition. The lack of consultation raises questions about the effectiveness of this support. By excluding some manufacturers, there's potential for a widening gap in the market that might hinder overall progress towards zero-emission vehicles. As Hawes noted, the ECG aims to target models with broader sustainability goals, but the intricacies of its implementation could mean missed opportunities for the industry as a whole.

Highlights

Exclusion of some models may widen the market gap.
Support is needed, but clarity is lacking in the ECG.
The grant will help some but not all manufacturers.
Less consultation means more uncertainty for the industry.

Concerns Over Electric Car Grant Implementation

The new Electric Car Grant may disadvantage certain manufacturers and limit market growth due to its strict criteria. This could lead to backlash from the automotive sector.

As the market adapts, the real challenge will be embracing inclusivity in automotive transition.

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electric vehicles government policy automotive industry uk grants sustainability transportation economy

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