3:06 pm, July 21, 2025
New research following the announcement of the Government’s latest Electric Car Grant has shown that 38 per cent of car buyers would consider buying a new EV before the grant scheme ends in 2028, with 65 per cent of those aged under 35 saying they will buy an electric car next.
But according to the research carried out by Motors, most people would have preferred the government to have lowered the rate of VAT on public charging, instead.
Research of 1,000 car buying decision makers carried out over the weekend of July 19-20 found an even split between male and female buyers, and that 62 per cent of drivers currently behind the wheel of a hybrid would consider an EV next.
A total of 60 per cent of those surveyed said they would rather the government cut the VAT charged on public charging from 20 per cent to five per cent – the rate applied to domestic electricity, rather than introducing the grant aimed at new vehicles.
However, the introduction of the grant appears to be stimulating EV consideration among used buyers, even though they will not directly benefit from it. Overall, 48 per cent of buyers said the grant will make them more likely to buy an EV, with 33 per cent of potential used EV buyers now more likely to make a purchase than before.
Commenting on the findings, Lucy Tugby, Marketing Director of Motors, said: ‘The Electric Car Grant is a welcome move by the government but buyers remain cautious and uncertain about the details. With new EV buyers already benefitting from low APR finance and other incentives, our research shows consumers would have preferred the government to have lowered the VAT on public charging; a move which would have given a much needed stimulus to the used EV market.
‘An unintended, but welcome, consequence of the Electric Car Grant, is the emergence of greater EV consideration with nearly half of buyers now thinking about purchasing an EV, including used car buyers who will not benefit under the scheme.’
