New UK EV Grants Arrive – But at What Cost to Old Cars?

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The list of qualifying models remains unpublished as of writing.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.