The UK government has reinstated the Electric Car Grant, offering discounts on qualifying new electric vehicles. The scheme now operates with two bands: Band 1 provides a £3,750 discount for cars with the lowest manufacturing CO2 emissions, while Band 2 offers a £1,500 discount for those above that threshold. To qualify, manufacturers must prove the vehicle achieves over 100 miles of range and carries a substantial warranty. The government applies the savings only to cars priced below £37,000, though buyers can still get the discount on higher trim levels up to £42,000 if the base model qualifies.
Who gets the full discount?
Several popular models now qualify for the full £3,750 grant. The Fiat 500e starts at £17,245 after the discount. The Nissan Leaf also meets the criteria, with the third-generation model starting at £32,249. The Hyundai Kona and Kia EV2 are available from £31,250 and £24,245 respectively. Buyers looking for an SUV might consider the BMW iX1, which starts at £33,315 after the grant.
More affordable options with partial grants
Many other electric cars qualify for the £1,500 band. The Fiat 600e and Abarth 600e are available from £25,495 and £32,495 respectively. The Volkswagen ID.3 sits in a similar price bracket at £29,360. The Peugeot e-208 begins at £28,650. The Citroen e-C3 supermini is eligible, with prices starting at £20,595. The Alfa Romeo Junior Elettrica and Alpine A290 also qualify, with the A290 starting at £30,245 after the grant.
Eligibility criteria and manufacturer requirements
Manufacturers must demonstrate that their electric vehicles are produced sustainably and possess a substantial warranty to participate in the scheme. The government applies the savings exclusively to EVs which cost less than £37,000. A specific stipulation allows buyers to receive the discount on higher trim levels up to £42,000 so long as the base model meets the criteria. The grant is available for cars that achieve over 100 miles of range, with the size of the discount directly linked to the vehicle’s manufacturing CO2 footprint. Band 1 applies to the lowest emission vehicles, offering the maximum £3,750 reduction, while Band 2 covers those above that specific threshold.
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Full-band vehicles and pricing
Several distinct models now qualify for the maximum grant amount. The Fiat 500e represents an iconic shape now underpinned by electric power, with prices starting at £17,245 after the discount. The Nissan Leaf, the third-generation model built in the UK, is priced from £32,249 and has progressed to compete with the best in its class. The Hyundai Kona offers a family SUV option starting at £31,250, while the Kia EV2 provides a chunky small car option for urban use from £24,245. The BMW iX1 and iX2 deliver electric SUV performance starting at £33,315.
Partial grants and value propositions
A wide range of vehicles falls into the £1,500 band, catering to various needs. The Fiat 600e and Abarth 600e are priced at £25,495 and £32,495 respectively, offering a spacious supermini experience. The Volkswagen ID.3 remains a popular choice for families at £29,360. The Peugeot e-208 provides strong range and desirability from £28,650. The Citroen e-C3 supermini is available from £20,595. Even vans like the Citroen e-Berlingo and Peugeot e-Rifter qualify, starting at £29,740 and £30,850 respectively, making them practical choices for family life.
Additional qualifying models
Further vehicles in the partial grant category include the Skoda Enyaq at £37,510, the Vauxhall Astra Electric at £32,630, and the Volkswagen ID.3 at £29,360. The Vauxhall Mokka Electric provides a crossover option from £30,180, while the Volkswagen ID.4 and ID.5 are available at £35,495. The Peugeot e-308 hatchback, which gained 23 miles of range to reach 281 miles, starts at £33,460. The Peugeot e-2008 crossover is priced from £33,900, and the Renault Megane E-Tech offers a family hatchback option from £30,995.
Commercial and MPV options
Commercial vehicles also benefit from the scheme. The Ford E-Tourneo Courier, based on the Fiesta, starts at £28,440 with a full grant. The Ford Puma Gen-E, a crossover with the engine replaced by batteries, is priced from £24,745. The Peugeot E-Traveller Combi and Vauxhall Vivaro Life Electric offer people carrier options at £35,425 and £37,600 respectively. The Skoda Epiq and Volkswagen ID. Polo round out the lineup, with the Epiq starting at £23,450 and the Polo at £23,945.
