Electric vehicle sales soar thanks to Government discounts

• Electric vehicle sales reach record levels in September as Government grant cuts upfront costs for buyers by up to £3,750, with 36 models available for the discounts.
• Over 20,000 people have benefited from the grant so far, helping families make the switch to electric whilst putting money back in people's pockets.
• Comes as industry data shows upfront costs of new electric vehicles, as compared to petrol and diesel, have dropped by 14% since last year.

Electric vehicle sales surged to record levels last month following a massive boost from the Government's Electric Car Grant (ECG), according to the latest Society of Motor Manufacturers and Traders (SMMT) figures released today (Saturday 4 October).

The data shows battery electric vehicle (BEV) uptake grew by 29.1% in September, with 72,779 registrations it was the best month on record for BEV volumes, accounting for 23.3% of the market with SMMT citing the Government electric car grant as a key factor for the record uptake.

Furthermore, eligible models – which comprise about 25% of available BEVs – enjoyed growth in uptake that outpaced the overall electric market.

The £650 million scheme launched this summer offers savings of up to £3,750 off some vehicles and is breaking down barriers to electric vehicle (EV) ownership by slashing upfront cost with Department for Transport figures showing more than 20,000 people have used the grant to save thousands off the price of their new car*.

There are now 36 models eligible under the grant from some of the most popular motoring brands including Nissan, Vauxhall, Ford and Citroën, with more expected to be announced in the coming weeks.

Upfront costs are also decreasing in the used EV market, having dropped more than a fifth since 2023 according to Autotrader, whilst further industry data shows upfront costs of new electric vehicles, as compared to petrol and diesel equivalents, have dropped by 14% since last year, with a difference of now £8,229 on average**. 

Transport Secretary Heidi Alexander said:

"Our discounts have sparked a surge in electric car sales, making them cheaper and within reach of more households than ever before.

“By cutting costs for families we're supporting industry, backing British jobs, and powering up growth — all part of delivering our Plan for Change.”

The SMMT figures are the latest in a string of positive news for EVs with industry data showing demand for the Ford Puma has risen by 540% since the grant was launched, with buyers taking full advantage of the maximum £3,750 grant.

Models eligible under the ECG have seen a 118% rise in enquires** whilst the new discounts have boosted consumer interest at the affordable end of the market with many eligible models now falling into the top ten most popular cars on Autotrader, many for the first time**. A recent survey commissioned by Renault also revealed 35% of UK drivers said they are more inclined to make the switch as a direct result of the ECG.

The Government is investing more than £4.5 billion into the EV transition after the UK ranked number one in Europe's EV market last year, and with sales up nearly a third so far this year. This is turbocharging the switch to EVs for both industry and drivers, helping to boost economic growth and support thousands of jobs. 

Supporting the Government's commitment to phase out the sale of new petrol and diesel cars by 2030, the ECG is backing UK manufacturers, with eligibility dependent on models meeting the highest manufacturing sustainability standards. Discounts of up to £3,750 are available at the point of sale for new eligible EVs priced at or under £37,000.

The grant is narrowing the upfront cost between petrol and electric vehicles, giving thousands more drivers access to savings of up to £1,500 a year in fuel and running costs compared to a petrol car.

Alongside addressing upfront costs, the Government is also tackling perceived range anxiety with more than 85,000 public charging points now in place on Britain's roads - the equivalent of one added every 31 minutes. More than 100,000 extra chargers are also being delivered through the £381 million Local EV Infrastructure (LEVI) Fund to ensure local councils have the funding to rollout the new chargepoints needed to meet increasing EV demand.

To make charging even cheaper and more convenient, a further £63 million package to support the rollout of charging infrastructure was announced in July, including funding for cross pavement charging solutions to help drivers tap into the domestic energy supplies and run their EVs for as little as 2p per mile.

Mike Hawes, SMMT Chief Executive: 

“Massive manufacturer investment has delivered a huge choice of more than 140 EV models, from city runarounds to family SUVs, saloons to sports cars, with a typical range of more than 290 miles which is at least double the average weekly drive. The creation of the Electric Car Grant adds another great reason to choose an EV, making many of them more affordable – so it's no surprise thousands more drivers are now switching on to the benefits of going electric with potentially cheaper running costs, an exceptional driving experience and, of course, greener travel.”

Chief Commercial Officer at Autotrader, Ian Plummer said:

“Electric car sales led the charge in the plate change month of September, as the Government's Electric Car Grant gave a real lift to the market. Since July, enquiries for new electric vehicles on Autotrader are up by almost 50%. For models eligible for the grant, interest has more than doubled - well above the 25% rise for those models which don't qualify. With affordability being the number one barrier to electric adoption, the Grant is making it easier for drivers to join the electric transition and signifies a positive trajectory of adoption.”

CEO of Carwow, John Veichmanis said: 

"The electric car grant is transforming curiosity into action. Customer enquiries for EV models on the Carwow platform are up 100% since the scheme was announced in June, showing that it is driving real momentum in the fuel type.

"With a third of UK drivers having never even sat in an electric car, and another third only ever as passengers, hands-on experience through test drives is crucial. Our research shows nearly three quarters of those who get behind the wheel of an EV are more likely to switch. Our data proves that the grant is helping new drivers take that first, vital step towards engaging with car dealers and starting their transition to electric driving." 

Edmund King, AA president, said:

"We are confident that the Government's Electric Car Grant is making a difference and is already encouraging some drivers to make the switch to EVs.

"Our inaugural 'AA UK EV Readiness Index' and polling showed that one in 15 drivers are already tempted to buy a new EV because of the grant. We believe this will only grow as the number of cars added to the list expands."