Car sales experienced a 2% drop in August's sales figures.
The Electric Car Grant, a £1,500 or £3,750 discount offered by the UK Government, has made a significant impact on the electric vehicle (EV) market in August 2025. This funding, part of the government's electric vehicle incentive scheme, applies to certain eligible electric cars in the UK market.
In August, the share of EV sales reached a high of 26.5%, marking a 24% increase compared to July. This upward trend is positive, according to SMMT chief executive Mike Hawes, and reflects the growing popularity of EVs.
The grant has been instrumental in reigniting consumer interest for EVs. Tanya Sinclair, chief executive of Electric Vehicles UK, notes that government policies and incentives are encouraging drivers to choose electric vehicles. Ian Plummer, chief commercial officer at Auto Trader, mentions that advert views for new EVs under £37,000 virtually doubled overnight after the grant announcement.
The choice of electric models across all segments has also expanded, giving consumers a vast array of options. As a result, more than one in three new cars now have a plug, and one in four are pure electric.
However, the overall number of new car registrations in August 2025 (82,908) was lower than the same month in 2024 (84,575), indicating that August, typically a quieter month for new car sales, was affected by the grant.
Transport Secretary Heidi Alexander stated that the grant is making it cheaper to go electric and is part of the plan for change. She emphasised that many consumers will benefit from the grant, with more eligible models receiving it and attracting more attention.
September, with the new number plate factor, is expected to be critical for new car registrations, typically driving around one in seven new car registrations for the year. Consumers are keeping a close watch on the grant and the expanding range of eligible models, signalling a promising future for the EV market in the UK.
