Written by Louis Sumner
The UK Government’s new Electric Car Grant (ECG) aims to make switching to electric more affordable, but only certain models qualify. The grant offers up to £3,750 off the list price for eligible vehicles, with a focus on affordability and sustainability.
How does it work?
From January 2025, qualifying EVs must be priced at £37,000 or less, have at least 100 miles of range, and meet strict warranty and sustainability requirements. These include:
- 8-year/100,000-mile battery and drivetrain warranty
- Verified science-based emissions reduction targets from the manufacturer
- Low carbon emissions in both battery production and vehicle assembly
The scheme is split into two tiers:
Band 2: £1,500 grant – meets most criteria but not the sustainability requirement
Band 1: £3,750 grant – must meet all criteria, including sustainability targets
Full list of eligible models (so far)
Band 1 – £3,750 (No models yet fully certified)
Band 2 – £1,500
Alpine A290: £32,000
Citroën e-Berlingo: £29,740
Citroën e-C3: £20,595
Citroën e-C3 Aircross:£21,595
Citroën e-C4: £26,150
Citroën e-C4 X: £27,215
Citroën e-C5 Aircross: £32,565
Renault Mégane: £30,995
Renault 4: £25,495
Renault 5: £21,495
Renault Scenic: £35,495
Nissan Micra: £21,495
Nissan Ariya: TBC
Vauxhall Corsa Electric: £26,005
Vauxhall Combo Life Electric: £30,690
Vauxhall Astra Electric: £33,505
Vauxhall Mokka Electric: £31,005
Vauxhall Frontera Electric: £22,495
Vauxhall Grandland Electric: £35,455
Only around 1 in 8 electric cars currently on sale qualify, meaning the grant is focused on making affordable EVs more appealing rather than subsidising premium models.
Why these cars make the list
As many of you would have already noticed, the list is heavy on French brands (Renault, Peugeot, Citroën) and UK/European-made Vauxhalls, along with value-driven Chinese brands like MG. This isn’t accidental. The grant’s price cap and sustainability rules naturally favour manufacturers producing cost-effective EVs at scale.
Meanwhile, Chinese brands are making a strong push into Europe, partly because of high US tariffs. Models like the MG4 and MG5 meet the affordability criteria, but some may struggle to meet the stricter Band 1 sustainability requirements.
What this means for you
If you’re considering a new EV under £37,000, now’s the time to explore options. While the top grant tier is currently empty, more models are expected to qualify throughout 2025, starting with the next-gen Nissan Leaf built in the UK.
In the meantime, plenty of capable EVs qualify for the £1,500 Band 2 discount, from city-friendly hatchbacks like the Fiat 500e to family-friendly crossovers like the Peugeot e-2008 or Vauxhall Grandland Electric.
