Everything you need to know about the electric car grant (UK)
What is the Electric Car Grant?
In July 2025, the UK Government relaunched the Electric Car Grant, a £650 million initiative aimed at making EV ownership more affordable and sustainable.
It offers two levels of discount at the point of sale for new electric cars priced at or below £37,000:
- Band One: £3,750 off for cars built to the highest sustainability standards.
- Band Two: £1,500 off for cars meeting minimum environmental criteria.
The scheme is scheduled to run until the 2028-29 financial year, but could end sooner if funds run out.
How does it work?
- No application needed – the discount is applied automatically at the dealership if the vehicle qualifies.
- Manufacturers apply to the Department for Transport to make their models eligible for the grant.
Which Cars Qualify?
- The car must be new (not second hand or pre-registered).
- It must be listed at £37,000 or under, or variant pricing under £42,000 if the base model qualifies.
- Only cars with low lifecycle carbon footprint production qualify for Band One. Band Two includes those meeting lower sustainability benchmarks.
- Chinese-made EVs are largely excluded due to manufacturing standards.
Current eligible models include:
Band One (£3,750 off)
- Ford E-Tourneo Courier
- Ford Puma Gen-E
Band Two (£1,500 off)
- Citroen e-C3
- Citroen e-C3 Aircross
- Citroen e-C4
- Citroen e-C4 X
- Citroen e-C5 Aircross
- Citroen e-Berlingo
- Citroen e-SpaceTourer
- Cupra Born
- DS N°4
- Nissan Ariya
- Nissan Micra
- Peugeot e-208
- Peugeot e-2008
- Peugeot e-308
- Peugeot e-Rifter
- Renualt 4
- Renault 5
- Renault Apline A290
- Renault Megane E-Tech Electric
- Renault Scenic
- Skoda Elroq
- Skoda Enyaq
- Toyota bZ4X
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID3
Who is the scheme for?
- Anyone in the UK purchasing a new qualifying EV.
- No direct application is needes, the dealership applied the discount.
- The grant applies to both private purchases and personal/business purchases, including salary sacrifice schemes.
Why was it introduced?
- To help drivers overcome upfront EV costs and promote zero-emission transport.
- Up to £1,500 annual saving in running costs compared to petrol/diesel cars.
- Part of the UK’s Plan for Change ahead of the 2030 ban on new petrol/diesel cars.
FAQ
No, the discount is automatically applied by the dealer on your invoice.
Ye, only approved manufacturers/dealers listed on the Gov.uk database can offer it.
Yes, funds are limited and applied on a first-come-first-serve basis.
Only models under £37k and built with low carbon footprint qualify, many luxury or Chinesee-built EVs don’t meet criteria.
The electric car grant is a major step towards affordable, sustainable motoring in the UK. If you’re considering a new electric car that fits the criteria, not is the time to act, these savings won’t last forever.