8:44 am, July 17, 2025
Vertu boss Robert Forrester has welcomed the ‘necessary’ new Electric Car Grant but questions remain over when customers will actually start to see discounts.
Car Dealer reported earlier in the week that Labour had signed off a new £650m package aimed at making new EVs cheaper to everyday buyers.
Forrester, a long-term critic of the UK’s electrification plans, has described the move as a ‘positive intervention’ which ‘couldn’t come at a better time.’
However, there does remain some confusion among dealers about when the discounts will actually be applied for customers walking into showrooms.
The scheme officially went live yesterday (Jul 16) but multiple franchised retailers have contacted Car Dealer to say it could be some time before buyers actually start to see subsidies.
With the new portal now live, manufacturers are able to apply for the discounts for individual models. However, it remains unclear how long the approval process could take, leaving dealers in something of a state of limbo.
Car Dealer approached a number of manufacturers yesterday, who confirmed that they were now in the process of applying for subsidies under the grant.
Despite the confusion, Forrester remains largely positive about the new measures, which will see up to £3,750 discounted off the price of a new EV.
In a statement issued via the Vertu website, he said: ‘The government’s latest move to boost electric vehicle uptake is both necessary and welcome.
‘The new £650m Electric Car Grant will offer up to £3,750 off the price of new battery-electric vehicles priced under £37,000. It’s a positive intervention, and one that couldn’t come at a better time.
‘EV uptake by private buyers has stalled in recent months. Just under 20% of electric vehicles are now sold to individuals, with the majority going to fleet and business users.
‘I have long maintained the argument that this imbalance is unsustainable. A true transition to electric motoring requires private buyers to have a seat at the table – and that means addressing the affordability gap.
‘With the average new electric vehicle now costing close to £49,000, the market has drifted away from the everyday motorist. This grant helps correct that, opening access to a wider range of customers by making sub-£40,000 EVs more appealing and financially viable.’
‘The grant is not a blunt instrument’
The new grant effectively replaces the Plug-In Car Grant, which was ditched by the Tories in 2022.
Ministers say that the new package of subsidies will reduce electric car prices by up to £3,750 for eligible new electric vehicles priced at or below £37,000.
Discounts will be available at the point of sale with funding available until the 2028/29 financial year.
The Department for Transport says that amounts will be based on a car’s ‘sustainability criteria’ with the greenest ‘band one’ vehicles eligible for the full amount of £3,750.
Meanwhile, band two vehicles will receive up to £1,500.
Both bands require the vehicle to be a brand-new battery-electric model with a retail price at or below £37,000, and both require the manufacturer to have a verified Science-Based Target for carbon reduction.
The key difference lies in the vehicle’s life-cycle carbon emissions with band one only including models with the lowest combined emissions, based on a sustainability assessment that weighs battery production (70%) and vehicle assembly (30%).
Vehicles that meet the minimum sustainability threshold – which has not been made public – but do not rank among the lowest in emissions are placed in band two.
A full breakdown of both bands can be seen below, with more information available on the government’s website.
| Feature | Band One | Band Two |
|---|---|---|
| Grant Value | £3,750 | £1,500 |
| Car Type | Battery Electric Vehicle (BEV) only | BEV only |
| Max Price (RRP inc. VAT) | ≤ £37,000 | ≤ £37,000 |
| Manufacturer must have an SBT | ✅ Yes | ✅ Yes |
| Sustainability Score | ✅ Top-tier (lowest life-cycle CO₂ impact) | ✅ Meets minimum, but not top-tier |
| Emissions from Production | Very low (battery & assembly score highly) | Moderate (acceptable, but not best-in-class) |
Forrester says he approves of the approach as it ‘recognises of the need to address embedded carbon emissions across a vehicle’s lifetime’.
The dealer boss also expressed cautious optimism about new investment in public charging, although he said the situation is ‘not without risk’ and needs to be ‘monitored closely’.
He said: Encouragingly, the grant is not a blunt instrument.
‘It now features two bands: £3,750 for the most sustainably produced cars, and £1,500 for vehicles that meet some – but not all – environmental criteria.
‘This is in recognition of the need to address embedded carbon emissions across a vehicle’s lifetime, not just exhaust emissions. That’s smart policy.
‘The green transition must be holistic – not only about emissions on the road, but also how the vehicle gets to the road in the first place.’
He added: ‘The announcement also arrives alongside investment in charging infrastructure.
‘With more than 80,000 public charge points now installed and additional funding to support home charging for households without driveways, some of the practical barriers to EV adoption are being addressed. It is a joined-up effort, and that is encouraging.
‘However, this is not without risks, particularly when it comes to used electric vehicles. Last year, two in five second-hand EVs were sold for under £20,000.
‘As more subsidised new EVs enter the market, the second-hand sector may struggle to absorb the volume, which could put further downward pressure on prices.
‘This matters, not just for buyers and sellers, but for leasing companies and manufacturers who rely on strong residual values to make their financial models work.
‘We need to monitor this closely. If used electric vehicle values decline too steeply, it could erode confidence and reduce uptake. Measures such as scrappage schemes, tax incentives for used EV purchases, or even battery health certification could help stabilise the sector.
‘Overall, though, this new grant represents a step in the right direction. It is targeted, pragmatic, and aligned with broader sustainability goals.
‘For Vertu, and the industry more widely, it sends the right signal: that the government remains committed to supporting the EV transition in a thoughtful, consumer-friendly way.
‘The task now is to make sure we bring the used car market along with us.’
