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Electric Car Grant accelerates EV demand

  • 25 September 2025
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  • Natalie Middleton

The launch of the Government’s Electric Car Grant (ECG) has accelerated plans by UK motorists to purchase EVs, despite initial confusion around which cars will be eligible. Following

Electric Car Grant accelerates EV demand

The launch of the Government’s Electric Car Grant (ECG) has accelerated plans by UK motorists to purchase EVs, despite initial confusion around which cars will be eligible.

Half of drivers say the arrival of the grant will encourage them to go electric sooner

Following announcements of the first tranches of eligible models, research by Venson Automotive Solutions reveals that just over half of drivers (51%) say that the introduction of the grant will encourage them to make the move to EV earlier than planned. This figure jumps to 87% among drivers aged 25-34 years old.

Nearly three-quarters (72%) of motorists say the ECG is a positive move on behalf of the Government. The scheme gives discounts up to £3,750 at the point of sale for new eligible electric cars priced at or under £37,000.

Despite this positivity, appetite to buy EVs diminishes with age according to Venson’s research. When asked whether they have been considering buying an electric car in the next 12 months, just 43% of all respondents said yes. However, this rises to 83% among those aged 25-34, compared with 49% for the 35-44 age group and just 22% for those aged 55-64.

Gender also appears to influence EV purchasing intent. Venson’s research revealed that more men are switched on to buying electric. Almost half (49%) say they are considering buying an electric car in the next twelve months, this compares with just 38% of women.

But with some of the most popular fleet electric cars, such as the Tesla Model 3, or BYD’s Seal not qualifying for the grant, it is a small wonder to learn that over two-thirds (68%) of motorists believe that the government grant should apply to all electric cars, regardless of price.

Venson’s research follows a similar study by Renault that found over a third (35%) of British drivers say they are more likely to buy an electric car following the introduction of the Electric Car Grant. Renault’s survey also revealed significant generational differences in attitudes to buying an EV.

Simon Staton, client management director at Venson Automotive Solutions, said: “There’s no doubt that confirmation of the first ECG-eligible models by the Department for Transport is a positive step for the market. Indeed, our research shows driver support for EVs remains strong, especially among 25- to 44-year-old drivers.

“However, whilst manufacturers continue to engage with the Government over which cars are eligible, drivers may well wait for certainty, with EV sales losing traction. But overall, we’re optimistic that the enthusiasm for the ECG, coupled with current manufacturer incentives, such as discounts and service packages, will help sustain momentum.”