As of 16th July 2025, the UK Government is officially launching a new round of Electric Vehicle (EV) grants, offering up to £3,750 off qualifying new EVs priced under £37,000. This unexpected move has sparked debate across the automotive world, not least because the details are still relatively vague. For enthusiasts, drivers, and classic car lovers alike, the announcement raises big questions: Will this scheme meaningfully boost EV sales? Or is it another rushed policy with unintended consequences for older vehicles?

What Do We Know About the New EV Grants?

The new EV incentive scheme, officially confirmed today, is part of a £650 million green transition package due to run until 2029. The top-line promise is a £3,750 discount on “affordable EVs”, designed to reinvigorate electric vehicle uptake among consumers amid rising EV production quotas.

But here’s the catch:

• The list of qualifying models remains unpublished as of writing.
• It’s unclear whether the grant is point-of-sale or claim-based.
• Used EVs are not included, despite calls from industry leaders.

This vague rollout has raised eyebrows across the industry, with many calling the scheme rushed and reactionary, especially given the slow pace of EV uptake in early 2025.

ZEV Mandate vs. Real-World Sales

Under the Zero Emissions Vehicle (ZEV) mandate, manufacturers must ensure that 28% of their new car sales in 2025 are zero-emission vehicles. However, current figures show only around 21.6% of new registrations in 2025 are fully electric, highlighting a significant shortfall.

• BEV market share in June 2025: ~21.6% (Source: SMMT)
• Mandated goal for 2025: 28%

The new grant is clearly a tool to bridge the gap and avoid fines or missed targets for manufacturers. But critics argue this “last-minute fix” could distort the market in unintended ways.

Impact on the New & Used Car Markets

New Market:

• Entry-level EVs like the MG4, Renault 5, or Citroën ë-C3 may suddenly see a surge in demand.
• Brands with qualifying models may see a temporary boost, while those priced just over £37,000 miss out.

Used Market:

• Used EVs will become comparatively less attractive, as buyers can access new models for similar money after applying the grant.
• This could stall the second-hand EV market, a segment already struggling with weak residual values.

The Danger for Old But Capable Cars

For those of us still running and maintaining older cars, such as the much-loved 1989–1994 Mazda 323F, this grant might bring yet another wave of premature scrappage. As people chase government handouts, it’s likely we’ll see:

• A rise in scrappage scheme incentives, bundling EV grants with “old car trade-in” offers.
• A decline in demand for efficient older petrol vehicles, even those that still pass MOTs and emissions tests.
• An increase in perfectly serviceable classic cars being taken off the road for no good reason.

This wouldn’t be the first time — past incentives have led to historic models being scrapped en masse, reducing the supply of parts and driving up prices for enthusiasts and restorers.

Has the Policy Been Rushed?

There’s no doubt that this grant is politically timed to rescue EV targets — but at what cost?

• Details are scarce, with no public eligibility list and little dealer guidance.
• The lack of support for used EVs contradicts the goal of sustainability.
• There’s no safety net for older, lower-income drivers who rely on older vehicles to remain mobile.

Instead of boosting EV sales in a meaningful and long-term way, the policy might create a short-lived market distortion and lead to another round of unnecessary vehicle scrappage — including cars like the Mazda 323F that continue to offer reliable, low-emission, and economical transport with proper care.

Why Mazda323F.com Cares

At Mazda323f.com, we believe in preserving the cars that still have plenty of life left in them. The Mazda 323F — particularly the BG generation (1989–1994) — is a shining example of a vehicle that’s:

• Fuel-efficient
• Lightweight
• Easy to maintain
• Still supported with available parts (thanks to our inventory!)

While EVs are part of the future, we don’t believe in writing off the past prematurely.

The new EV grant might tick political boxes and shift short-term numbers, but without clarity and proper balance, it risks:

• Undermining used EV values
• Ignoring older vehicle owners
• Scrapping functional, sustainable cars

As always, we encourage our readers to make informed choices — whether that means holding on to your classic 323F or preparing for the electrified future. Either way, Mazda323f.com will support you with parts, guides, and community.

Need parts for your classic Mazda 323F?

We’ve got you covered – from anti-roll bars to rare trim pieces, browse our store and keep your car on the road where it belongs.

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Honda’s strong sales performance in July 2024, as evidenced by its year-on-year growth across several key segments, is a promising indicator of its positive trajectory. As Honda continues navigating the evolving automotive landscape, several key trends and strategic focuses will likely shape its future, let’s take a look at them.

1. Accelerated Shift Towards Electrification

The significant growth in Honda’s hybrid and electric vehicle (EV) sales reflects a broader global trend towards electrification. As governments worldwide impose stricter emissions regulations and offer incentives for electric and hybrid vehicles, Honda is well-positioned to capitalize on this shift.

A deep-dive

• Expanding EV Lineup: Honda has already begun expanding its EV offerings, with models like the e:Ny1 and upcoming electric SUVs. Over the next few years, we can expect Honda to accelerate its EV rollout, introducing new models across different segments to meet the increasing demand for zero-emission vehicles.

• Investment in Battery Technology: Honda’s investment in battery technology, particularly solid-state batteries, will be crucial in maintaining a competitive edge. These batteries promise faster charging times, longer range, and enhanced safety, making them a key component of Honda’s strategy to lead in the EV market.

• Strategic Partnerships: Honda’s collaboration with other automotive giants, such as General Motors (GM), to co-develop next-generation EVs, highlights the importance of partnerships in driving innovation. These collaborations will likely yield new, cost-effective technologies that will help Honda expand its EV portfolio and maintain profitability in a competitive market.

2. Continued Dominance in the SUV Market

Honda’s SUV and crossover segment is expected to remain a strong growth driver over the next few years. The increasing consumer preference for SUVs, coupled with the success of hybrid variants like the CR-V Hybrid, positions Honda well in this highly competitive segment.

• New Model Introductions: Honda is likely to continue introducing new SUV models and updating existing ones to meet evolving consumer demands. The focus will likely be on enhancing fuel efficiency, integrating advanced driver-assistance systems, and offering more hybrid and electric variants.

• Market Expansion: As developing markets continue to grow, the demand for affordable, versatile SUVs will rise. Honda’s strong brand presence in Asia and Latin America, combined with its ability to produce cost-effective models, will help the company tap into these emerging opportunities.

3. Strengthening Position in Key Markets

Honda’s performance in key markets like North America, Asia, and Japan will be critical in determining its future success. The company’s ability to tailor its offerings to regional preferences and regulations will play a significant role in maintaining its competitive edge.

• North America: In North America, where the demand for SUVs and trucks remains strong, Honda is likely to focus on expanding its hybrid and EV lineup to meet the growing demand for eco-friendly vehicles. The company will also need to navigate the competitive landscape by offering advanced technology and maintaining strong brand loyalty.

• Asia and Japan: In Asia, particularly China and Southeast Asia, Honda’s strategy will likely involve increasing the production of compact cars, hybrids, and EVs to meet the region’s demand for affordable, fuel-efficient vehicles. In Japan, the kei car segment will remain important, and Honda will continue to innovate in this space to retain its market leadership.

4. Embracing Technological Innovation

As the automotive industry becomes increasingly technology-driven, Honda’s commitment to innovation will be crucial in maintaining its competitive position. This includes advancements in autonomous driving, connectivity, and in-car entertainment systems.

• Autonomous Driving: Honda has been investing in autonomous driving technology, and we can expect to see more models equipped with advanced driver-assistance systems. These technologies will enhance safety, convenience, and the overall driving experience, aligning with consumer expectations for smart, connected vehicles.

• Connected Cars: The integration of connectivity features, such as over-the-air updates, advanced infotainment systems, and seamless smartphone integration, will be key to attracting tech-savvy consumers. Honda’s future models are likely to offer enhanced connectivity, catering to the growing demand for in-car digital experiences.

5. Challenges Ahead

Despite the positive outlook, Honda will face several challenges in the coming years:

• Supply Chain Disruptions: The global supply chain remains vulnerable to disruptions, as seen during the COVID-19 pandemic. Honda will need to continue enhancing its supply chain resilience to mitigate the impact of future disruptions.

• Competitive Pressure: The automotive industry is becoming increasingly competitive, with new players entering the EV market and established brands accelerating their electrification efforts. Honda will need to innovate continuously and maintain cost-effectiveness to stay ahead.

• Regulatory Compliance: As governments worldwide tighten emissions standards, Honda will need to ensure that its entire vehicle lineup meets these regulations. This will require significant investment in R&D and potential adjustments to production processes.

A Promising Yet Challenging Road Ahead

Honda’s strong sales performance in July 2024 is a testament to its robust market presence and ability to adapt to changing consumer preferences. Over the next few years, the company’s focus on electrification, technological innovation, and market expansion will be key to sustaining growth. However, Honda must also navigate challenges such as supply chain disruptions and intense competition in the EV space.

As Honda continues to evolve, its commitment to sustainability, innovation, and customer satisfaction will be critical in shaping its future. If the company can successfully leverage its strengths and address the challenges ahead, it is well-positioned to remain a leader in the global automotive industry.

What About Honda In The UK?

Well, it’s interesting, kind of. As of August 2024, Honda’s sales performance in the UK has shown a significant trend of stabilization and strategic adjustment. Despite facing a downward trend in volume over the past decade, Honda has found what it describes as a “sweet spot” in terms of profitability. The company’s UK sales have stabilized at around 30,000 units. Which Honda believes optimizes profitability, customer satisfaction, and sustainability for the future. Boring. Bring us the Integra!

This strategic shift reflects a broader trend in the automotive industry where manufacturers are prioritizing profitability and customer retention over sheer volume. Honda’s approach has been to focus on maintaining a loyal customer base while carefully expanding its electrified vehicle lineup. This of course includes hybrid and fully electric models, to meet evolving market demands.

Honda has also emphasized the importance of its dealer network and the value of in-person customer experiences. Even as the automotive industry continues to adapt to increased digital sales processes initiated during the pandemic.

This stabilization and strategic focus are critical as Honda prepares to introduce a broader range of electric vehicles in the UK market. It’s aiming to release three new electrified models in the coming year and 30 by 2030.

While it’s a shame to see Honda accepting that they don’t have the same market presence here as they once did, especially after closing down UK production, at least they are in it for the long term.

if you enjoyed this extra-long article, I think you’re gonna love this one.

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Toyota has recently reported a notable profit increase, despite facing significant challenges in its home market of Japan.

Toyota Profit Figures

The company’s first-quarter results showed a 1.7% rise in net income, reaching 1.33 trillion yen (£7.3 billion), with a substantial 16.7% jump in operating profit to 1.31 trillion yen (£7.2 billion).

This boost was driven by a weak yen, which increased the value of overseas earnings, and effective cost-cutting measures.

Domestic Hurdles

Toyota’s domestic operations have been impacted by a series of issues, including production and sales drops in Japan, largely due to certification problems and a series of recalls. In June 2024, the Japanese government instructed Toyota, alongside other automakers like Honda and Mazda, to halt deliveries of certain vehicle models within Japan due to these certification issues.

Additionally, Toyota was issued a correction order by the Japanese transport ministry for not fully complying with national vehicle inspection standards, further complicating domestic operations​

Strategic Adjustments

Despite these challenges, Toyota has managed to maintain its profitability through strategic adjustments. The company has focused on enhancing its cost efficiency and leveraging the weak yen to offset domestic losses.

Toyota’s revenue also saw a significant 12.2% increase, reaching 11.8 trillion yen (£65.1 billion). This was largely attributed to strong sales in markets outside Japan, particularly in North America and Asia, where the weaker yen made Japanese exports more competitive.

Future Outlook

Looking ahead, Toyota continues to aim for strong global sales, with plans to significantly ramp up its electric vehicle (EV) production. The automaker has set ambitious targets, including selling 1.5 million pure electric vehicles annually by 2026 and 3.5 million by 2030.

However, the company also faces criticism for being slower than competitors like Tesla and China’s BYD in embracing battery-electric vehicles.

Impact on Brand Perception

Toyota’s ability to maintain profitability despite domestic challenges speaks to the strength of its global operations and its strategic focus on cost management. However, the ongoing certification issues and the slow transition to EVs could impact its brand perception, both in Japan and globally.

As the automotive industry continues to shift towards electrification, Toyota’s future success will depend on how effectively it can navigate these challenges and capitalize on its strengths.

If you’d like to read more, I loved this article on Toyota’s Financials from Tech Xplore.

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