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The UK’s New EV Grant – What You Need to Know

By Jodie Chay Oneill | July 15, 2025

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A total of £650 million has been set aside by the Department for Transport (DfT) for the Electric Car Grant

The UK’s New EV Grant – What You Need to Know

From 16 July 2025, the UK government is reintroducing financial support for electric vehicle buyers with a new £650 million grant scheme designed to boost EV adoption and help meet net-zero targets. Here’s what’s included – and which cars could qualify.

The Headline Offer

  • Up to £3,750 off a new battery-electric vehicle (BEV)
  • Applies to EVs priced at £37,000 or less
  • Runs from July 2025 to 2028–29
  • Discount split into bands:
  • Band 1 – £3,750 (most sustainable models)
  • Band 2 – £1,500
  • No grant for others

Grants are not automatic – manufacturers must apply and demonstrate the environmental impact of battery production and vehicle assembly.

Which Cars Qualify?

The full list of eligible models hasn’t been released. That’s because the process requires each carmaker to submit data on sustainability performance before the government assigns a vehicle to Band 1 or Band 2.

Below is a list of models that are expected to qualify based on current pricing and availability. Band status is still to be confirmed.

Model Likely Eligibility Notes
Mini Countryman E Yes - Band TBD Made in UK, sustainability profile likely strong
Citroën ë-C4  Yes – Band TBD  Affordable compact EV, common across Europe
Škoda Elroq Yes – Band TBD   Due for late 2025 launch, expected under threshold
Dacia Spring   Yes – Band TBD Budget EV, already selling under £20k
Renault 5 Renault 5 Yes – Band TBD  Recently announced with focus on price-accessibility
Ford Puma Gen-E Yes – Band TBD New electric version just announced
Nissan Leaf Yes – Band TBD Older model but still eligible due to price
MG4 MG4 Yes – Band TBD  Popular model undercutting Tesla on price
BYD Dolphin BYD Dolphin Yes – Band TBD  Chinese-built, eligible due to cost and volume
Vauxhall Corsa Electric Yes – Band TBD UK-favoured small EV, below £33k in base trim

What Happens Next

  • 16 July – manufacturers begin submitting vehicles for assessment
  • 11 August – digital system goes live, with approved models expected to follow
  • From mid-August – dealerships may start applying discounts on eligible vehicles

The Goal

EVs currently make up 22% of new UK car sales – short of the 28% Zero Emission Vehicle mandate. This grant is designed to close that gap, make EVs more affordable and support greener production practices.

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