As the UK government intensifies its push toward electric vehicle adoption, six new electric car models have been added to the national discount scheme, bringing the total number of eligible vehicles to over 30. The Electric Car Grant, launching in July 2025, will provide substantial financial incentives for consumers looking to make the switch to zero-emission vehicles.
The newly eligible models include four from Citroën’s electric lineup – the ë-C3, ë-C4, ë-C5, and ë-Berlingo – alongside two Ford offerings, the Puma Gen-E and e-Tourneo Courier. The scheme operates on a two-tier system, with the Ford models qualifying for the premium £3,750 discount due to their superior emissions criteria, while the Citroën range receives the standard £1,500 grant.
All vehicles under this program must maintain a manufacturer’s list price below £37,000, including VAT and standard equipment. The discount is applied automatically at the point of purchase, eliminating paperwork burdens for consumers. Dealerships process the grant seamlessly, with manufacturers receiving monthly reimbursements from the government.
The initiative forms part of a broader £4.5 billion investment in clean transport, with over £650 million specifically allocated to this grant program. This approach to reducing upfront costs addresses what I’ve observed as the primary barrier to EV adoption across the market. This strategy aligns with the growing e-bike sector where government incentives have successfully accelerated adoption rates in urban mobility solutions.
Targeted financial incentives tackle the critical cost barrier hampering widespread electric vehicle adoption across diverse consumer segments.
The grant structure supports both private purchases and company car schemes, with recent adjustments capping eligible trim variants at £42,000 to prevent manufacturer manipulation. For employees using salary sacrifice arrangements, the grant can provide significant monthly savings of up to £104 for vehicles receiving the higher tier discount. Only fully electric passenger vehicles qualify; plugin hybrids aren’t included in the program.
Current funding is secure through at least the 2028-29 financial year, with regular updates anticipated as manufacturers adjust pricing strategies to maximize eligibility. The scheme aligns strategically with the Zero Emission Vehicle Mandate, requiring automotive brands to increase their proportion of electric sales. The growing network of over 82,000 public chargepoints across the UK further supports the government’s commitment to EV adoption.
This targeted financial support should drive several thousand additional EV sales in its first year, reinforcing the UK’s commitment to transportation decarbonization while supporting domestic automotive manufacturing.
