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EVs that hit sustainability targets will be eligible, but a slow rollout of grants could be making buyers hesitant
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Ford has become the first car manufacturer to secure the full £3,750 discount under the government’s new electric car grant (ECG), with the new Puma Gen-E qualifying for the maximum saving.
The discount means the electric version of the UK’s best-selling car can be had for as little as £135 per month on personal lease via Ford’s dealer group. The electric E-Tourneo Courier also qualifies for the full grant.
On top of the government incentive, Ford is continuing to offer its generous ‘power promise’ which includes a free home wall charger, five years of free servicing and up to 10,000 miles of complimentary charging. Ford claims the combined savings could amount to £127 a month compared to running the equivalent petrol model.
“We welcome the government’s decision to accelerate the transition to electric mobility and are proud that Ford’s commitment to sustainability has been recognised with the full EV grant,” said Lisa Brankin, Ford UK Chair and Managing Director.
The grant amounts are based on sustainability criteria set by the government, with car makers having to commit to a series of science-based targets on emissions across the entire production line. The cleanest vehicles, assessed on the CO2 emissions from battery production and vehicle assembly, receive the top grant of £3,750, while the next cleanest get £1,500.
Announcing the new grant, Transport Secretary Heidi Alexander said “this EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.”
While it’s welcome news for Ford, clarity on exactly which cars will receive the grant has been slow coming. Anyone who buys an EV before the grants are approved will not be eligible for the grant to be issued retrospectively, and there’s concern that the EV market could stall while buyers wait to find out what grants will be issued to EVs with list prices under the £37,000 threshold.
The Ford Puma Gen-E and E-Tourneo Courier are the only EVs to be awarded the full £3,750 grant so far. Here’s the full list of cars in the second band, which meet the government’s requirements for a £1,500 discount.
The industry has given a mixed reaction to the new scheme. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), welcomed the news, calling the government support package “a clear signal to consumers that now is the time to switch.”
However, Toby Poston, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), warned of the potential impact on the used EV market.
“This generous grant will boost uptake in the retail market but could have serious repercussions for the used market, where rampant depreciation already has red warning lights flashing,” said Poston. “Further stimulating new EV registrations without supporting the used market risks creating an even greater supply/demand imbalance, putting even more pressure on fast deflating second-hand values.”
The launch of the government’s electric car grant arrived alongside a £25m scheme for local authorities to introduce cross-pavement technology to allow EV charging cables to run safely beneath pavements to help EV owners who don’t have off-street parking. An £8m fund has also been made available to electrify ambulance and medical fleets across 200 NHS sites.
The government has committed to updating EV charging signs on major roads, too. For the first time, EV charging hubs – which have more than doubled since early 2023 – can now be signposted from motorways and main A-roads.
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