In a clear sign of shifting demand and market maturity, the Government’s new Electric Car Grant (ECG) has now seen over 20,000 grants paid out, as the list of qualifying models continues to grow, with the recent addition of Volkswagen’s ID4 and ID5.

Under the ECG scheme, which launched in July 2025, the Government offers point-of-sale discounts on new electric cars priced at £37,000 or below. The most environmentally sustainable models qualify for up to £3,750 off the purchase price, while others meeting eligibility criteria receive a £1,500 discount. These criteria include minimum battery range, warranty standards and manufacturer commitments to verified emissions reduction targets. 

Ford’s Puma Gen-E and E-Tourneo Courier have emerged as standouts, being the only two models confirmed to date that qualify for the full £3,750 grant under the highest ‘band one’ category. 

“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.

Crucially for fleet managers and policy watchers alike, latest figures from the Society of Motor Manufacturers and Traders (SMMT) show that over half (50.8%) of new vehicle registrations in September 2025 were electrified, with battery electric vehicles (BEVs) in particular enjoying their best month on record. This represents a significant milestone in the UK market’s shift away from internal combustion engines. 

So, have we reached the tipping point? In terms of market momentum and government support, it seems more probable than not. But the transition is also being shaped by the wider fiscal environment.

2025 Budget: supporting EV adoption and introducing new charges

The 2025 UK Budget introduced several measures that will influence EV uptake beyond the grant scheme. 

Most notably the Government allocated an extra £1.3 billion to extend the Electric Car Grant programme through to 2029-30, helping ensure continued support for EV buyers in the medium term. 

The threshold for the Vehicle Excise Duty (VED) Expensive Car Supplement, a road tax surcharge previously applied to many EVs above £40,000, is being raised to £50,000 from April 2026, expanding the range of EVs that will remain exempt. 

Also, the Government reaffirmed support for charging infrastructure and extended zero-emission vehicle capital allowances.

However, the Budget also confirmed the introduction of a pay-per-mile tax from 2028, which has attracted industry concern about potential impacts on EV economics. 

While challenges remain, particularly around charging accessibility and total cost of ownership, the confluence of policy support, growing model choice and rising consumer adoption suggests the UK electric transition is well on its way.

Read more from CIHT: Challenges of rolling out EV charging infrastructure.

Image: Ford Puma Gen-E electric SUV on display during the Bucharest Auto Show, Romania. Credit: Shutterstock.