The first two electric cars to qualify for Labour’s full £3,750 Electric Car Grant have finally been named, more than a month after the scheme launched.
The Ford Puma Gen-E and the Ford E-Tourneo Courier are the first to meet the government’s strict sustainability criteria. From 28 August, both models qualify for the maximum saving, bringing the price of the Puma Gen-E down from £29,995 to £26,245 and the E-Tourneo Courier from £32,190 to £28,440.
The scheme is designed to reward EVs with a lower carbon footprint in production. It does not just look at how clean the car is to run, but also how sustainable it is to build, factoring in battery production, assembly, and the energy mix of the country where the vehicle is made. Ford’s cars benefit because production and battery assembly take place in Europe, while their electric drive units are built in Merseyside.
Cars that do not meet the top standards still qualify for a smaller £1,500 saving under Band 2. In total, 28 electric cars under £37,000 have been approved so far, but only the two Fords have been placed in Band 1.
The scheme has already caused confusion. Many buyers are holding off purchasing until they know which models will get the biggest discounts, and dealers report customers walking into showrooms demanding savings that are not yet confirmed. Industry insiders say the slow, drip-feed approach of announcing eligible cars is frustrating both buyers and sellers.
Chinese-built models are unlikely to qualify for Band 1 at all, with ministers citing high reliance on coal power in production. BYD, now the world’s biggest EV maker, has criticised the scheme, calling it “stupid.”
The grant was relaunched in July with £650 million of funding to try to boost sales among private buyers after a slowdown in demand. Concerns around charging infrastructure, depreciation, and high new model prices have been holding EV sales back. The government hopes that by lowering upfront costs until 2028–29, more people will be encouraged to switch before the 2030 ban on new petrol and diesel cars comes into effect.
More models are expected to be approved in the coming weeks as manufacturers’ applications are reviewed against the sustainability criteria.
Current cars qualifying for the grant are:
BAND 1 - £3,750
- Ford Puma Gen-E
- Ford E-Tourneo Courier
BAND 2 - £1,500
- Alpine A290
- Citroen e-C3 and Citroen e-C3 Aircross
- Citroen e-C4 and Citroen e-C4 X
- Citroen e-C5 Aircross
- Citroen e-Berlingo
- Cupra Born
- DS DS3
- DS Nº4
- Nissan Ariya
- Nissan Micra
- Peugeot e-208
- Peugeot e-2008
- Peugeot e-308
- Peugeot e-408
- Peugeot e-Rifter
- Renault 4
- Renault 5
- Renault Megane
- Renault Scenic
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID.3
