by Britain Reinstates Electric Vehicle Subsidies
The UK government has announced the reinstatement of the electric vehicle subsidy program, which was canceled in 2022. Now, buyers will be able to receive discounts from £1,500 to £3,750 on new electric cars costing up to £37,000. This step is intended to stimulate the transition to “green” transport, as the country plans to ban the sale of internal combustion engine (ICE) cars by 2030.
The program is designed for three years and will be funded from a budget of £650 million. Separately, £63 million has been allocated for the development of charging stations, which is meant to solve one of the main problems – the lack of infrastructure. However, the £37,000 limit makes subsidies unavailable for many popular models, such as the Hyundai Ioniq 5 or Tesla Model 3.
EV sales are stronger in Britain than in some neighbouring European countries, but they still only accounted for 22 percent of car sales in the first half of 2025, well below the 28 percent target set by the government
The previous subsidy program, which provided discounts of up to £7,500, proved its effectiveness but was closed due to overly rapid success. The new initiative is intended to help manufacturers who are facing difficulties in meeting electric vehicle sales quotas. Some companies have even artificially limited sales of ICE vehicles to avoid fines.
The growth of the electric vehicle market share has slowed, and without state support, achieving the ambitious 2030 goals seems unlikely. Manufacturers have already announced updates to their model lineups so that some cars qualify for subsidies, which could make them more affordable for the mass consumer.
