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The Department for Transport have announced a new £650 million Electric Car Grant (ECG) scheme, aimed at accelerating the transition to zero-emission vehicles.
OVERVIEW OF THE SCHEME
- Funding Available: £650 million
- Vehicle Eligibility: Electric cars with a list price of £37,000 or less
- Discounts Offered: Between £1,500 and £3,750
- Effective Date: Applies to orders placed on or after 16 July 2025
- Scheme Duration: Until the 2028/29 financial year, or until funds are exhausted
ELIGIBILITY CRITERIA
To qualify, vehicles must:
- Be M1 category passenger vehicles (passenger vehicles with no more than eight seats in addition to the driver's seat)
- Include a 3-year/60,000-mile warranty (minimum)
- Offer 8-year/100,000-mile battery and drivetrain warranty
- Maintain battery capacity of:
- 80% for the first 3 years
- 70% for 8 years or 100,000 miles
WHO CAN BENEFIT
The grant is available to:
- Private consumers
- Businesses
- Salary sacrifice schemes
- Company car providers
There is no cap on fleet orders, and the grant will be administered via a central portal, similar to the previous Plug-in Car Grant.
NEXT STEPS
Our team is on hand to offer advice on leasing your electric vehicle – don’t hesitate to get in touch sales@ovl.co.uk
For full details and FAQ’s , please refer to the official announcement from the BVRLA:
BVRLA Government introduces Electric Car Grant
