Last week, the UK government launched its Electric Car Grant, offering up to £3,750 off new electric vehicles (EVs) priced under £37,000. The move was broadly welcomed by motor trade industry bodies and dealers as a timely boost to help increase private EV adoption. NFDA expressed support for the scheme. Sue Robinson, NFDA Chief Executive welcomed the Government’s action to boost the electric vehicle market, highlighting the importance of a coordinated and joined up approach to ensure that the transition to EVs is as consumer friendly as possible. However, many also stressed the need for clearer guidance on eligibility and grant conditions to avoid market confusion. At the same time, concerns have emerged about the wider impact of the grant. Several industry voices, including NAMA, have pointed out that the scheme could accelerate depreciation pressures on the used EV market, where residual values have already fallen sharply. The industry has urged the Government to introduce support measures for used EVs, including a proposed £1,000 grant and battery health certifications to help sustain confidence in second-hand electric vehicles. Manufacturers and dealers are also navigating operational challenges. MG Motor UK reported a temporary slowdown in EV orders due to uncertainty over grant details, prompting the company to introduce its own £1,500 incentive on eligible models to keep sales moving. In response to the grant’s eligibility criteria, several manufacturers, particularly Chinese EV brands including Leapmotor and Great Wall Motors, have launched their own incentives matching the Government’s discount. These moves aim to maintain competitiveness and consumer interest amid ongoing market uncertainty. For more information: Used EV market risk due to impact of new electric car grant | Market insight MG acted on EV order slowdown caused by Electric Car Grant uncertainty | Manufacturer News Electric grant news triggers surge in EV interest on AutoTrader | Market insight Leapmotor launches own EV grant as potential barriers for Chinese brands emerge | Manufacturer News