UK’s New Electric Car Grant Sparks Price Cuts and EV Buzz
The UK has just rolled out a revamped Electric Car Grant (ECG) worth £650 million, and it’s already shaking up the electric vehicle market. Under this scheme, buyers can save up to £3,750 on certain models, with discounts applied automatically at the point of sale—no forms, no fuss. The aim is simple: make electric cars more affordable for everyday drivers, not just company fleets or high earners, and help the country gear up for the 2030 ban on new petrol and diesel car sales.
Here’s how it works. The grant is split into two tiers. “Band one” vehicles, which are the greenest in terms of manufacturing and battery production, qualify for a £3,750 discount. “Band two” cars get £1,500 off. But there’s a catch: the car’s retail price has to be under £37,000, and the manufacturer must meet strict sustainability targets verified by the Science Based Targets initiative. That means some popular brands—Tesla, BMW, Audi—don’t make the cut. Cars built in countries with high-carbon electricity grids, like China, are also at a disadvantage.
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Already, 17 models have been approved. These include popular choices like the Citroën ë-C3, Renault Megane, Nissan Micra, and Vauxhall Grandland Electric. More are expected in the coming weeks as manufacturers apply. For now, this list heavily favours European-built cars, particularly those produced in plants powered by cleaner energy sources.
The ripple effect has been immediate. Even brands unlikely to qualify are slashing prices to stay competitive. Chinese manufacturer Leapmotor has cut up to £3,750 from its models, while Renault and Vauxhall have tweaked prices to slip just under the £37,000 threshold. Industry watchers say getting an entry model under that cap is key, because it makes the whole range eligible if it uses the same battery setup.
Government officials say this is about more than just saving buyers money—it’s about boosting jobs, encouraging domestic manufacturing, and keeping the UK ahead in EV adoption. Last year, Britain was Europe’s largest EV market, and sales are already up nearly a third this year. With over 82,000 public charge points (and one being added every 30 minutes), infrastructure is catching up too.
Carwow reports that interest in sub-£37,000 EVs surged 124% in the week after the grant was announced. And while the scheme runs until 2027–28—or until the money runs out—early movers may benefit most, especially with extra brand-led discounts sweetening the deal.
So, whether you’re eyeing a city-friendly ë-C3, a family-ready Scenic, or a locally built Nissan Leaf due later this year, this might be one of the best times in years to make the switch to electric. In the words of one industry boss, “Whether you get the grant or not, prices are coming down. That’s what matters.”
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