Electric car grants - what's the deal?


Tom Barnard

15 Aug 2025

The first announcements of cars eligible for the government grant have been made – and the list of models is growing, along with others which have their own manufacturer backed discounts.

The official grant has a tiered system calculated on varying environmental factors during the production process, from the Science Based Target initiative (SBTi). It means only cars which meet sustainability targets are eligible for government help. This has caused confusion and consternation in the industry and seems to have stalled sales

So far there are no models which qualify for the full £3,750 Band 1 help, and 17 which will get the lesser Band 2 incentive of £1,500.

The eligible vehicles so far are:

Other Stellantis brands are expected to be added shortly, along with other VW Group EVs based around the same platform as the Born - such as the ID.3 and Skoda Elroq. Volkswagen and Skoda have launched their own "Grant Guarantee" schemes covering the Elroq, Enyaq and Volkswagen ID.3 and ID.4 which will give customers the £1,500 off until the official grant kicks in. You can’t get both chunks of £1,500 off, however. The sportier GTX, vRS and VZ trims aren’t covered either.

In the meantime, we spotted these other ‘unofficial’ incentives. Talk to your dealer though, as these may be linked to finance deals or have other catches. 

Alfa - Alfa Romeo is also offering a £1,500 saving across all Junior Elettrica models, including the top of the range 280hp Veloce and the Intensa Special Series. It’s available now on top of existing retail offers, including 0% APR on Personal Contract Purchase and a free EV home charger. It means the cheapest Junior Elettrica starts at £32,405. 

GWM Ora - GWM UK introduced a £3,750 ‘Green Grant’ on all variants of the ORA 03, including the PURE, PRO, and GT, bringing the starting price down to £21,245 on the road. The grant can also be used as a deposit on a PCP agreement, with 0% APR currently available across the range.

Hyundai – The company is taking money off its entire electric car range, including those priced over the government’s £37,000 list price cut off.

The Grant provides £3,750 off the cheapest model in the range – the INSTER - and £1,500 off the KONA Electric, IONIQ 5, IONIQ 6, and IONIQ 9. Together with an additional £500 ‘summer saving’ it means the cheapest INSTER is now £19,255 for anyone paying cash. It is currently limited to orders placed until the end of September. 

 

Leapmotor - Leapmotor has launched its own discounts, offering £1,500 off the T03 and discounting the C10 by £3,750. It makes the T03 the most affordable electric car in the UK at £14,495, or £169 per month with a £169 deposit on a 0% APR Personal Contract Purchase (PCP) deal. The Dacia Spring – its main rival – currently costs £14,995, and is also offering 0% on a PCP.

The bigger Leapmotor C10 family SUV falls to £32,750 with £3,750 grant applied.

MG – MG will offer a £1,500 discount on the MG4 EV and MGS5 EV to private buyers. This will sit alongside any existing promotions from MG’s 155 UK dealers. With the discount applied, the cheapest MG4 model is now £25,495.

Peugeot - Ahead of government confirmation of the official grant on the wider range, Peugeot underwriting the £1,500 on the E-408, E-308, E-308 SW, and 2026 model year E-TRAVELLER. 

Skoda - The "Grant Guarantee" covers the Elroq and Enyaq, offering £1,500 off until the official grant kicks in, which is expected imminently. The sportier vRS and VZ versions aren’t in the offer.

Skywell - Until the end of September buyers who are brave enough to buy a Skywell BE11 will be offered £3,750 as the ‘grant’, in addition to a £6,000 dealer finance deposit contribution.  It means the BE11 range now starts from £27,245.

Smart - The "Smart EV Car Grant" sees £1,500 being wiped off the prices of the #1 and #3 SUVs. These models already had savings on them, so, with the addition of the grant, total savings are £3,500 on each car. Prices now start at £28,460 for a #1 and £31,460 for a #3

Suzuki - The “Suzuki Granted” scheme covers the new e-Vitara EV, offering  up to £3,750 off the new electric SUV ahead of its UK arrival this autumn. It makes the entry-level 49kWh Motion model start at £26,249.

​Volkswagen - has a "Grant Guarantee" scheme covering ID.3 and ID.4 which will give customers the £1,500 off until the official grant kicks in. You can’t get both chunks of £1,500 off, however once the government approval arrives. The sportier GTX trims aren’t covered.

Volvo - Volvo’s EV Grant offer is not quite as generous as it only gives £1,500 off the EX30 models, including the Cross Country. It is redeemable on cash, Volvo loan and PCP purchase options and brings the entry level price down to £31,560.


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