Uncertainty Stalls EV Market as Industry Presses Government for Grant Eligibility Details

The Society of Motor Manufacturers and Traders is calling on the UK Government to urgently publish a complete list of vehicles eligible for the recently launched Electric Car Grant. The appeal comes amid signs that the country’s battery electric vehicle market is beginning to lose momentum.

According to new data released this week by the SMMT, registrations of fully electric cars increased by 9.1% in July. While this still reflects growth, it is a noticeable drop from the nearly thirty-five per cent surge recorded across the first half of 2025. July now stands as the second weakest month of the year for BEV growth, surpassed only by April, a period heavily impacted by tax-driven market fluctuations.

Electric vehicles made up just over twenty-one per cent of the total market share last month. That’s a slight improvement from the same time the previous year but still falls short of the twenty-eight per cent threshold required under the UK’s Zero Emission Vehicle Mandate.

This mandate, which obligates automakers to steadily increase the proportion of zero-emission vehicles in their annual sales, was recently revised. The revisions aim to help manufacturers adapt to shifting consumer demand while maintaining the 2030 deadline for phasing out new petrol and diesel vehicles. There is now additional flexibility built into the system, particularly for hybrids and the way credit allocations work.

The SMMT welcomed the launch of the Electric Car Grant as a timely and helpful measure to stimulate demand for electric cars. However, it also warned that the lack of clarity around which models are eligible has introduced an element of hesitation into the market. Many potential buyers are choosing to delay their decision until the complete list of qualifying vehicles is made public.

The Electric Car Grant was officially introduced in mid-July. It offers direct discounts on new zero-emission cars with a retail price of £ 37,000 or less. The size of the discount depends on how each model performs in relation to a set of environmental benchmarks. Top-tier models that meet the highest sustainability standards can receive a grant of up to £ 3,750.

Cars that fall into the second tier are eligible for a fifteen-hundred-pound discount. Rather than asking customers to apply, the scheme channels funding straight to manufacturers. Discounts are applied at the point of sale, and the programme operates on a first-come, first-served basis.

The Government has stated that the grant will be available until at least the end of the 2028-2029 financial year, although its continuation will depend on future budget availability.

Earlier this week, officials confirmed the first batch of eligible vehicles. The list includes four Citroën models, the ë-C3, e-C4, ë-C5, and the ë-Berlingo, each of which qualifies for the fifteen-hundred-pound tier. Government representatives have indicated that more qualifying models will be revealed in the weeks ahead.

As the electric vehicle sector continues to navigate a complex transition, the SMMT has made it clear that timely information, consumer confidence, and consistent policy support will be essential to maintaining the momentum toward zero-emission mobility.

SMMT’s chief executive Mike Hawes said: “July’s dip shows yet again the new car market’s sensitivity to external factors, and the pressing need for consumer certainty.

“Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.”