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The UK’s Electric Car Grant (ECG) is now firmly established and is bringing real savings to electric car buyers across the country, as ministers, manufacturers and dealerships make electric vehicles more affordable.
The grant, introduced in July 2025 as part of the government’s wider transformation strategy, aims to reduce the price of eligible new electric cars by up to £3,750. The scheme, backed by billions of funding and extended in the November Budget, is designed to reduce the gap between the upfront cost of EVs and their petrol or diesel counterparts – a key barrier cited by drivers reluctant to make the switch.
Basically ECG works by offering two tiers of rebates depending on the environmental credentials of the car. Band 1 cars scored in line with the government’s sustainability criteria qualify for the full £3,750 rebate. Band 2 cars, which meet a slightly reduced set of criteria, are eligible for a rebate of £1,500. Dealers deduct the subsidy at the point of sale – buyers don’t have to do anything.
As per the scheme’s eligibility rules the electric car must have a minimum battery range of 100 miles and there must be specific warranty terms for both the vehicle and its battery. Vehicles must also meet price cap rules to qualify – usually starting below a set threshold.
Overall, these rules have opened up a broad and growing list of eligible models from a variety of car brands. Government figures show that more than 40,000 drivers have already benefited from the scheme since its launch, and an extra £1.5 billion announced in the Autumn Budget has increased funding, extending the life of the program to 2030.
Get the biggest £3,750 electric car grant rebate on EVs
Among the beneficiaries of Band 1 – cars that qualify for the maximum savings of £3,750 – are a number of models that have become increasingly familiar on British roads, with these cars benefiting from an immediate sales increase:
• Ford e-Tourneo Courier
These vehicles are among the greenest vehicles in the scheme, meeting the highest sustainability norms and meeting all range and warranty standards. For many, this means significant reductions: A family-friendly crossover or a compact city car can now cost thousands less than before.
EVs get £1,500 electric car grant rebate
The Band 2 list eligible for the £1,500 grant includes a wide range of everyday EVs from European and Japanese brands. These include models that may not meet top-tier criteria but still offer strong electric performance and practical appeal:
, Citroen e-C3, e-C3 Aircross and e-C3 range
• Citroen e-Berlingo
• Citroën e-SpaceTourer
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• Peugeot e-Rifter
• Peugeot e-Traveller
• Renault Megane
• Toyota C-HR+
• Toyota Proace City Verso
• Vauxhall Combo Life Electric
• Vauxhall Grandland Electric
• Vauxhall Vivaro Life Electric
Some of the names on the Band 2 roster are familiar to drivers considering their first EV. The Kia EV4 and PV5, for example, have recently joined the list, underscoring how new entries keep joining the scheme and broadening the options for buyers.
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Industry response to the scheme has been broadly positive. At the start of the rollout, the Ford Puma Gen-E – the electric version of the UK’s best-selling car – became the first model to qualify for the full grant, highlighting how volume sellers can also benefit. Manufacturers such as Renault have since confirmed eligibility across most of their electric lineups – from practical hatchbacks to family SUVs – while Nissan’s latest Leaf, built in Sunderland, is also expected to feature prominently among the Band 1 exemptions as it hits UK forecourts.
Critics still warn that ECG alone will not solve all the barriers to electrification – charging infrastructure outside urban centers remains poor and consumer awareness of total cost of ownership is mixed. But the UK has recently recorded a rising share of plug-in vehicles in new registrations, with early data and surveys suggesting the grants have attracted more buyers to showrooms.
For those in the market for a new electric car, the list of eligible models is now something to check out early in the research process – whether chasing a band-one savings that cuts thousands off the price tag, or a band-two discount that still sweetens the deal. ECG is now involved in UK EV policy and with EV prices falling as more and more affordable models are launched, buyers have a clearer path to switching to zero-emission driving than at any time in recent years.