The UK is reintroducing subsidies for electric cars to encourage a switch to zero-emission transport and help carmakers meet strict emissions quotas. According to an article published on Autocar website The new scheme is part of the government's £650 million (£18.4 billion) Drive35 initiative, with discounts of up to £3,750 (£106,000) available from 16 July 2025 for electric cars priced up to £37,000 (£1.05 million).
The move is intended to increase the market share of EVs, which stands at 25 % in 2025, with a target of 28 %. The Drive35 programme includes not only subsidies for the purchase of vehicles, but also investment in production, research and development, job creation and improving the skills of the workforce. The subsidies are targeted at car companies, which will pass them on to lower vehicle prices, rather than directly to customers.
This is subject to compliance with emission criteria, including a "verified emission reduction target" under the Science Based Targets initiative. Interestingly, there is a protectionist element - higher rebates will be given on UK-built cars, which is intended to support the domestic car industry.
Cars that meet the price limit include the Citroën ë-C3 Aircross (from £23,095 / £653,000), Peugeot e-Rifter (from £32,250 / £912,000), Vauxhall Astra Electric (from £34,130 / £965,000), Volkswagen ID.3 (from £30,860 / £873,000) and Skoda Elroq (from £31,510 / £891,000). More expensive models, such as the Skoda Enyaq or Volkswagen ID.4, are not eligible for subsidies.
The scheme is designed to help carmakers avoid fines of £12,000 (£339,000) for every conventional car sold above the allowable share, encouraging a rapid switch to electro-mobility.
The move comes in response to declining interest in electric cars in Europe, where sales are down 5.9 % in 2024, according to the Association of European Automobile Manufacturers (ACEA). The UK government is following global trends and trying to revive the market through financial incentives.
Autocar/gnews.cz - GH
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