It’s been a big week for electric vehicles, and if you’re in or around the UK automotive world, you’ll know the Government has just dropped two significant announcements that signal a renewed commitment to electrification and homegrown innovation.
It’s been a big week for electric vehicles, and if you’re in or around the UK automotive world, you’ll know the Government has just dropped two significant announcements that signal a renewed commitment to electrification and homegrown innovation.
From fresh incentives for EV buyers to a long-term manufacturing support programme aimed at securing the UK’s industrial future, these developments appear to be genuine signals of momentum.
In case you have missed any of these announcements, here’s a straightforward summary of what’s just landed and why it matters for the future of the sector.
New electric car grant: up to £3,750 off
The UK Government has relaunched an EV purchase grant, with a pot of £650 million running across the next three years. This grant enables drivers buying a new electric car under £37,000 to claim between £1,500 and £3,750 off, depending on sustainability criteria.
Unsurprisingly, this is welcome news for the bulk of EV buyers, owing to the fact that roughly half of today’s EV models already fit the threshold. Beyond giving consumers a concrete benefit at the dealership, it also incentivises manufacturers to ramp up their green production credentials – result! This is a clear step forward as various European markets creep closer and closer to impending deadlines on the sale of new petrol and diesel cars.
DRIVE35: a £2.5 billion boost for EV manufacturing
Earlier in the week, the government also announced the launch of DRIVE35, a programme dedicated to supporting projects centred around the transition to zero-emission vehicle manufacturing. DRIVE35 will commit £2 billion in funding through to 2030 and a further £500 million for R&D to 2035.
The package supports the full UK automotive spectrum, from established gigafactories to startups. This will be done under the guise of three pillars: Transformation, Scale Up, and Innovation.
Often, these projects can be slow starters, but it doesn’t seem to be the case here. Work is already well underway, with over £300 million already allocated to projects across Bolton, the West Midlands, and other areas. These projects include work on EV inverters, powertrain components, and even NHS fleet electrification.
Ultimately, this is huge news, not only because it represents a clear commitment to a zero-emission future, but because of the benefits it will have on the UK’s EV supply chain and the tens of thousands of green jobs that will be created in response.
Announcements like the two in question shape the trajectory of the UK’s automotive landscape – not just for manufacturers, but across the wider ecosystem of infrastructure, supply chains, innovation, and investment.
They also confirm what we’ve known for a long time; the EV transition is complex, fast-moving, and fundamentally tied to smart, strategic policymaking.
We’ll continue to monitor how these initiatives unfold, what funding opportunities emerge, and how key players in the industry can make the most of them. If you ever want to talk EVs, policy, or the future of the automotive sector, you know where to find us.
