The UK government has launched a new Electric Car Grant (ECG) to make electric vehicles (EVs) more affordable for private and business users. Backed by £650 million, the idea is to stimulate new EV sales and support the country’s transition to cleaner transport.

Key Details of the Electric Car Grant

Electric Vehicles - Vehicle Procurements Ltd

How Much You Can Save

  • Up to £3,750 off the list price of new battery-electric vehicles (BEVs)
  • Applies to cars with a list price of £37,000 or less
  • Grant is applied automatically at point of purchase or lease

Eligibility Criteria

  • Be fully electric (BEV) – plug-in hybrids (PHEVs) do not qualify for this scheme
  • Have a list price of £37,000 or below, including options
  • Be produced by a manufacturer with verified science-based sustainability targets

Why This Matters to Vehicle Procurements Ltd Customers

This grant provides a clear cost-saving advantage for both private drivers and fleet buyers. It lowers the financial barrier to entry for zero-emission vehicles while supporting long-term sustainability goals.

For fleet managers of bodyshop and accident repair centres, this initiative is an opportunity to futureproof operations with lower running costs and improved green credentials.

Electric Vehicle Options at VP Ltd

The new grant focuses on fully electric vehicles. Luckily, due to our relationship with Ford, we can access deals for the Ford Puma, Ford Capri and Ford Explorer. If this sounds like something of interest, call us on 0115 987 7744.

Industry Reactions

The British Vehicle Rental and Leasing Association (BVRLA) welcomed the ECG as a “generous” step that will help widen access to EVs. However, the association also warned that expanding new EV sales without support for the used market could lead to declining residual values and higher financing costs for fleets.

This generous grant will boost uptake in the retail market but could have serious repercussions for the used market.

said Toby Poston, BVRLA Chief Executive – Read more from BVRLA

VP Summary

The Electric Car Grant is a positive move that will help reduce the cost of switching to electric vehicles. While not all models currently offered by VP fall under this new scheme, our lineup of emerging BEVs positions us to support customers at every stage of their electrification journey.

For questions about how the grant affects your next vehicle or fleet order, please get in touch with the Vehicle Procurements Ltd team.