The Transport Secretary’s claim that electric cars are now “within reach of more households than ever before” captures the spirit of September’s sales boom, but a closer look reveals a more nuanced picture of affordability. While the government grant has certainly lowered the ladder, for many, the top rungs of EV ownership remain out of reach.
The policy has been successful in its stated aim. For a household that was already in the market for a new car and could budget for, say, £35,000, the £3,750 grant has indeed brought a range of EVs within their grasp. This is the group that drove the record sales, proving that for this “near-market” segment, the policy was the final push they needed.
However, the UK’s median household income and the ongoing cost of living crisis mean that for a large portion of the population, a new car of any kind, let alone one costing over £30,000, is a non-starter. The grant makes an expensive product cheaper, but it does not make it cheap. It helps the middle, but not the base of the economic pyramid.
Furthermore, the price cap of £37,000, while intended to focus on the mass market, excludes many larger family-sized EVs. This means that for bigger households needing more space, the range of “within reach” options remains frustratingly small, forcing them to look at the less-subsidized and often more expensive models.
So while the grant has successfully expanded the circle of potential EV owners, and the September figures are a testament to that, the phrase “within reach” still comes with an asterisk. True affordability for the majority of UK households will likely only come from a mature used market and further reductions in the unsubsidized price of the vehicles themselves.