A new £650m grant will enable drivers across the UK to purchase dozens of new electric vehicle (EV) models at discounted prices.

Under the Electric Car Grant (ECG) scheme, a discount of £3,750 will be available at the point of sale for new eligible EVs priced at or under £37,000.

Recent months have seen a surge in EV adoption, with a total of 46,700 new electric cars registered across the UK in June 2025, marking a substantial 45.5% increase on the same month in 2024. 

The government hopes this new scheme will see that number increase even further, particularly since the upfront costs required to switch to EVs are often seen as a key barrier to adoption.

With the government maintaining its pledge to ban the sale of new petrol and diesel cars by 2030, the ECG had been preceded by calls to launch financial incentives for new EV buyers.

Car makers can apply for their EVs to be part of the ECG scheme from 16 July, with funding available until the 2028/29 financial year.

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.”  

Simon Williams, RAC head of policy, said: “Within weeks, discounted cars should start appearing at dealerships across the country. And, as the biggest savings will be given to cars with the strongest ‘green’ manufacturing credentials, drivers will be picking models that are not only better for their wallets, but better for the planet too.”

However, charging infrastructure has also been found to be a barrier to EV adoption, impacting car companies’ ability to develop and sell EVs at scale.

Last year, McKinsey reported that 42% of prospective EV buyers worldwide want to see as many EV chargepoints as there are petrol stations, and charging times of less than 30 minutes, before they would consider making the switch to electric. 

In the UK, there are currently over 82,000 public chargepoints nationwide. To help boost the build-out of charging infrastructure further, the government last week announced a £63m investment package, which includes a scheme to install cross-pavement technology that will allow cables to run safely beneath pavements and EV owners without a driveway to charge at home. This means they can take advantage of their cheaper, domestic energy supply as opposed to relying on commercial chargers.

The cross-pavement technology is currently being trialled by Bournemouth, Christchurch and Poole Council. 

Vicky Read, CEO of ChargeUK, said: “This announcement is brilliant news – for drivers and for the UK’s transition to electric vehicles.

“With a commitment to invest £6bn through to 2030, the UK’s charging industry has rolled out infrastructure ahead of demand to ensure that when drivers switch, the network is there to make charging as convenient as possible. There are now 82,000 public charge points and a new one goes in the ground every 29 minutes on average.”