Everything you need to know about the electric car grant

Six more models from Ford, Peugeot, and DS have been added to the government’s Electric Car Grant (ECG) scheme, bringing the total to 28 eligible EVs. The two Ford models are the first in the scheme to be eligible for the maximum grant of £3,750.

From today, you can get money off the following models:

1. Ford Puma Gen-E (£3,750 discount)
2. Ford e-Tourneo Courier (£3,750 discount)
3. Peugeot e-308 (£1,500 discount)
4. Peugeot e-408 (£1,500 discount)
5. DS DS3 (£1,500 discount)
6. DS Nº4 (£1,500 discount)

These join models from brands such as Citroen, Nissan, Renault, Vauxhall, Cupra, and Volkswagen, which have been announced as eligible for the grant over the month of August. The discount is applied automatically at purchase – no forms or paperwork needed.

More EVs eligible for the grant will be revealed in the coming days and weeks. But in the meantime, here’s everything you need to know about the electric car grant so far.

• • What support could you get?
  • What cars will be eligible?
  • Pre-grant discounts from some carmakers
  • What does the grant mean for you?
  • What if I’ve ordered a car before the grant was announced?
  • What else is the government doing?
  • What are carmakers doing?

What support could you get?

The government’s £650m electric car grant aims at making EVs more affordable, offering discounts of up to £3,750 on brand new electric cars. This forms part of the UK’s Plan for Change, designed to help households save money while accelerating the switch to greener, zero-emission cars.

Car buyers can claim the discount directly at dealerships on electric cars with a starting price under £37,000 – no separate application needed. Some manufacturers are still awaiting their turn for approval, but Ford, DS, and two more Peugeot models are the latest to join the scheme. This means discounted EVs should start appearing in showrooms for these brands in the coming days and weeks.

With £650m allocated, the grant could subsidise around 173,000 electric cars at the full £3,750 discount – roughly half the number of EVs purchased in the UK last year.

The Electric Car Grant (ECG) will run until the 2028/29 financial year, potentially helping thousands of drivers get behind the wheel of cheaper electric cars.

Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.

So, what cars will be eligible?

Only cars from brands committed to a Science-Based Target (SBT) for cutting emissions – and that have demonstrated real progress – will qualify. Nearly 50 new electric car models are expected to meet these sustainability criteria, with more likely to be confirmed soon.

There are two levels of support: the greenest models qualify for the full £3,750 discount, while cars that don’t quite meet the highest eco-standards still get £1,500 off.

The grant is not only being given to cars with a recommended retail price (RRP) of £37,000 or less. If the cheapest version of a model costs less than £37,000 and qualifies for the grant, pricier trim levels above it will also get the grant as long as they have the same size battery. However, it’s important to note that there’s now a £42,000 price cap on these more expensive variants, which means some top-end versions are now excluded.

Ford and DS are the latest brands to have certain models in their electric ranges to be approved for the EV grant, with the Ford models being the first to qualify for the full grant of £3,750 on the Puma Gen-E and the Ford e-Tourneo Courier.

They join the likes of Cupra, Peugeot, and Volkswagen, with certain models approved for the £1,500 EV grant on 15 August – you can save on a Cupra Born, Peugeot e-2008, and Volkswagen ID3.

On 9 August, 13 models from Nissan, Renault, and Vauxhall were also added to the list, meaning there are £1,500 discounts on models such as the Nissan Micra, Renault 5, and Vauxhall Corsa Electric.

But Citroen was the first brand to be approved for the scheme on 5 August. You can get £1,500 off six Citroen electric models, including: e-C3 and e-C3 Aircross, e-C4, e-C4 X, e-C5 Aircross, and the e-Berlingo.

Some brands are already offering pre-grant discounts

There’s been a lot of back and forth about whether Chinese car brands – known for offering some of the cheapest electric cars around – will be eligible for the government’s ‘second level grant’ of £1,500. Some reports say they might qualify based on their environmental credentials, while others suggest they could be left out entirely.

Instead of waiting around for a decision, brands such as Great Wall Motors, Leapmotor, and Skywell have gone ahead and launched their own discounts that match the grant. You can also find similar deals on popular models such as the MG S5 EV and MG4, on top of any other offers MG already has going.

And it’s not just Chinese brands getting in on the action – Alfa Romeo, Hyundai, Volvo, Smart, Volkswagen, Skoda, Vauxhall, Suzuki, and Toyota are also offering discounts on certain models across their ranges.

Want to learn more? Head over to our dedicated page for the latest discounts outside of the government grant.

What does the grant mean for you?

Many drivers say the upfront cost of electric cars is a major barrier. This grant is designed to close that gap, making EVs more affordable from the get-go.

On top of the discount, electric cars can save you up to £1,500 a year on fuel and running costs compared to petrol cars. Combined with lower taxes and ongoing savings, switching to an EV is becoming an increasingly smart choice for families looking to save money.

The market is also getting more affordable, with two in five used electric cars sold for under £20,000 and 34 brand new models priced below £30,000.

EV charging is also booming, with over 82,000 public points across the country – and a new one popping up every 30 minutes. So whether you’re at home, work, or on a longer trip, charging your car is getting easier.

The grant could also change the game for car leasing. Rob Buckland, leasing director at Carwow Leasey, explains that once manufacturers are approved for the grant, the on-the-road (OTR) prices of qualifying electric cars will drop – and that customers will expect transparency around whether those savings are passed on to them.

What if I’ve ordered a car before the grant was announced?

If you’ve already ordered a car that’s now included in the grant scheme, you’re probably wondering what this means for you. At the moment, there’s no official guidance, and each approved manufacturer may handle things a little differently.

For Renault customers, only orders showing the grant deduction on the invoice are eligible. Meanwhile, Nissan says it will review on a case-by-case basis requests from customers who have already ordered one of their eligible cars but still wish to claim the grant.

Citroen says that customers who ordered a car before 16 July – and are proceeding to register it – will not be eligible for the grant. A customer could ask their retailer to cancel and restart the order to make it eligible; however, there’s no guarantee that the original terms (such as price or finance arrangements) would still apply.

If you’re still unsure where your order lies, it’s best to speak with your dealership or the manufacturer directly. They can explain how the grant process works for your order and let you know if there’s any way to adjust it so you don’t miss out.

What else is the government doing?

Along with the electric car grant, the government is investing £25m to help local councils install “cross-pavement” charging solutions. These involve digging a small trench in the pavement with a flap that lets a charging cable safely cross the road without causing a trip hazard.

This setup will make it easier for people without driveways to charge their EVs at home with cheaper electricity, potentially saving some drivers up to £1,500 a year compared to petrol or diesel.

On top of that, another £30m is going towards helping businesses switch their fleets to electric, and £8m will bring chargers to over 200 NHS sites across the country.

The scheme also comes alongside the Zero Emission Vehicle mandate, which requires car manufacturers to sell more zero-emission vehicles every year. Updates to these rules are helping car companies feel confident about making more electric cars.

And for every driver, the government is putting a record £1.6bn into fixing potholes and freezing fuel duty at 5p until spring 2026 – which should save most drivers around £50-60 a year.

What are carmakers doing?

Original equipment manufacturers (OEMs) are getting involved with the new electric car grant by applying online to get their vehicles approved and manage the grant process.

However, Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the industry wasn’t asked for input before the grant was launched. While he welcomed the idea of support, he pointed out that it doesn’t help all brands equally – which isn’t ideal.

Some car models won’t qualify for the grant at all, which could make it harder for those brands to meet new zero-emissions rules. Hawes also noted that setting the grant limit at £37,000 effectively divides the market and leaves some buyers out.

Instead, the SMMT had been pushing for a VAT cut on EVs sold to private buyers, saying that would do more to help the people who really need support. “We get the ambition behind it,” said Hawes, “but it’s still not very clear.”

Here’s a list of Carwow’s best EV guides for you to check out:

• How to charge an electric car at home and on the road
• Electric car charger installation costs
• 10 best home EV chargers in the UK
• What are the main benefits of electric cars?
• Do you pay road tax on an electric car?
• How to charge an electric car with no driveway

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