Vertu Motors chief executive Robert Forrester has welcomed the government’s new £650 million Electric Car Grant as a “necessary and welcome” intervention to boost private EV sales, but has warned that it could put pressure on the used EV market.
The new scheme offers up to £3,750 off battery-electric vehicles priced under £37,000, aiming to make EVs more affordable for motorists.
“EV uptake by private buyers has stalled,” said Forrester. “Just under 20% of EVs are now sold to individuals. That imbalance is unsustainable. This grant helps redress that by making EVs more financially viable.”
Forrester also praised the tiered structure of the grant, which offers £3,750 for the most sustainably produced vehicles and £1,500 for those that meet some environmental criteria.
“It’s smart policy,” he said. “A holistic transition must consider the entire carbon footprint – not just what comes out of the tailpipe.”
However, he cautioned that the influx of subsidised new EVs could cause instability in the second-hand market.
“Two in five used EVs sold last year were under £20,000. If residual values fall further, confidence could be undermined,” he said, urging additional support such as scrappage schemes, battery health certification, and tax incentives for used EV buyers.
Despite concerns, Forrester called the initiative a “step in the right direction” that sends a clear message of long-term government support for electrification. “The task now is to make sure we bring the used car market along with us.”