EV Subsidies Across Europe: How the UK’s £3,750 Grant Compares
The UK government has reintroduced a major electric vehicle (EV) purchase incentive, aiming to accelerate the transition to zero-emission transport. From 16 July 2025, car manufacturers can apply for the new £650 million Electric Car Grant, which offers discounts of up to £3,750 on new EVs priced at £37,000 or less. The scheme will run through the 2028–29 fiscal year and links eligibility to both vehicle price and sustainable manufacturing standards—excluding high-emission models and premium vehicles.
The grant forms part of the government’s Plan for Change, supporting its manifesto pledge to end new petrol and diesel car sales by 2030. More than 380,000 zero-emission vehicles were sold in the UK in 2024, and the scheme is designed to maintain momentum—particularly for lower-cost and UK-built models.
Comparing European EV Incentives
The UK’s new grant stands out for directly targeting affordability and incentivizing sustainable, domestically produced EVs. How does it compare to other major European markets?
Germany
Incentives are now focused on commercial fleets, after consumer subsidies were scrapped in late 2023. Businesses can still benefit from tax rebates and bonus schemes for electric vans and company cars, with measures extended through 2028.
France
France’s ecological bonus system remains in place, but key changes in 2025 include a reduced total budget and a shift to a tiered structure based on household income. The maximum bonus has been lowered to €4,000 (down from €7,000), a move that has coincided with a slowdown in EV sales and raised concerns about long-term adoption.
Italy
As of March 2025, Italy no longer offers a national EV purchase subsidy. However, several regions have introduced their own generous support packages. Valle d’Aosta offers up to €12,700 in combined purchase and scrappage incentives, while regions like Lombardy, Bolzano, and Sicily run similar programs. National funding also remains available for residential charging through the Bonus Colonnine scheme.
Spain
Spain’s MOVES III program continues, offering grants of up to €7,000 for EV purchases and funding for home and public charging points. The program runs through 2025 and is part of Spain’s broader green recovery strategy.
European Union (EU)
The European Commission is assessing bloc-wide EV support measures amid concerns over falling sales and Chinese competition. While a formal EU-level incentive scheme is not yet in place, discussions are ongoing as part of the EU’s broader Green Deal industrial policy.
Across Europe, support for EV adoption is increasingly uneven. Some countries, such as France and Germany, have scaled back national grants, while others rely on regional or targeted programs. The UK’s new grant places it among the more comprehensive national schemes, combining affordability with an emphasis on domestic and sustainable manufacturing. The broader trend now leans toward tailored incentives—focusing on fleets, charging infrastructure, or low-income buyers—rather than blanket subsidies.