UK’s £700 Million EV Subsidy Plan Targets 2030 Sales Deadline

- The UK government announces £700 million in buyer incentives and £2.5 billion in automaker support to push EV adoption. - New initiatives tackle infrastructure gaps, high EV costs, and other adoption hurdles. On July 13, 2025, the UK government unveiled a comprehensive plan to accelerate electric vehicle (EV) adoption. This plan supports the ambitious goal to phase out new petrol and diesel car sales by 2030 and hybrids by 2035. Transport Secretary Heidi Alexander announced discussions for a £700 million package of subsidies and grants to boost consumer EV purchases. These measures are part of a wider Labour government strategy to overcome cost and infrastructure barriers that hinder the EV transition. The government also announced £63 million to enhance charging infrastructure. Of this, £25 million will help local authorities implement innovative cross-pavement charging solutions for households without driveways, while another £8 million will fund the NHS’s transition to an all-electric fleet. Additionally, a broader £2.5 billion program will assist automakers in switching to zero-emission vehicle manufacturing, a program which signals a major commitment to position the UK as an EV industry leader. These plans aim to address critical obstacles like high upfront EV costs and inadequate charging networks, which authorities frequently cite for lagging EV sales targets. To this end, private-public partnerships are already playing a pivotal role. For example, Wallbox is collaborating with charge point operator Believ to deploy Supernova DC fast chargers across the UK, a project that uses £300 million in funding to install 30,000 public charging points. Similarly, Schneider Electric and the Source joint venture between TotalEnergies and SSE plan to install 3,000 high-power charging points across 300 EV hubs. These efforts will solidify the groundwork for a robust EV infrastructure ecosystem. Automakers are also bracing for a transformative shift. Chinese EV manufacturer Xpeng entered the UK market earlier this year and plans to establish 20 dealerships by the end of 2025. Meanwhile, the Sunderland-based AESC battery gigafactory will elevate the UK’s production capabilities, manufacturing batteries for up to 100,000 EVs annually and reinforcing the domestic supply chain for zero-emission vehicles. These initiatives collectively reflect the UK government’s intensified focus on building a sustainable EV ecosystem to meet its 2030 and 2035 climate-linked mandates.