The price sensitivity of UK car buyers was on full display in September, as a government grant unlocked a wave of demand for electric vehicles, propelling sales to unprecedented new heights. The record figures demonstrate that while the desire for greener cars is strong, for many households, the final purchasing decision hinges on affordability.
The reintroduction of a grant worth up to £3,750 was the key that turned consumer interest into concrete sales. This was reflected in a nearly one-third increase in registrations for pure electric cars and a massive 56% leap for plug-in hybrids. This surge from price-sensitive buyers was the driving force behind the overall market’s 14% growth.
Transport Secretary Heidi Alexander directly credited the policy for this outcome, stating the discounts have made EVs “within reach of more households than ever before.” This underscores the reality that, amid a cost of living crisis, the higher upfront cost of electric cars remains a significant barrier to mass adoption. The grant has effectively levelled the playing field, at least temporarily.
The impact is most visible in the segment of the market where the grant applies—vehicles priced under £37,000. This has concentrated sales activity on more mainstream models, rather than the premium end of the EV market. It shows a market that is broadening its appeal, moving beyond early adopters to more budget-conscious families.
While this subsidy-driven boom is positive news, it also serves as a stark reminder of the economic realities facing consumers. The record sales are a direct function of a temporary price reduction. For the EV transition to become truly self-sustaining, the unsubsidized cost of these vehicles will need to fall to a level that the average, price-sensitive buyer can afford.