Citroen has become the first automaker to receive government approval for the UK’s new Electric Car Grant, with six models now qualifying for a £1,500 discount.
The e-C3, e-C3 Aircross, e-C4, e-C4 X, e-C5 Aircross and passenger versions of the e-Berlingo all qualify for the grant. This brings the compact e-C3 hatchback’s starting price down to £20,595 – making one of the UK’s most affordable EVs even cheaper.
The grant gets automatically applied to list prices when buyers purchase qualifying vehicles.
That means the e-C4 now starts at £26,150, while the e-C5 Aircross family SUV will cost £32,565. The approval makes Citroen the first manufacturer to get official confirmation from the government that its EVs meet grant requirements.
“With the first models approved today and more to come over the next few weeks, this summer we’re making owning an electric car cheaper, easier and a reality for thousands more people across the UK,” said Transport Secretary Heidi Alexander.
Greg Taylor, managing director of Citroen UK, welcomed the development. “We’re delighted to be the first to have our electric range approved and eligible. At Citroen we want everyone to have the opportunity to make the switch to an electric car and this support will help make our cars more accessible for our customers.”
Grant Structure and Timing
The Electric Car Grant was announced in mid-July, offering up to £3,750 off new EVs costing up to £37,000. The discount doesn’t take effect until August 11, and manufacturers must apply for approval for each electric model in their lineup.
Two grant levels exist – band 1 provides £3,750 automatically applied to the list price, while band 2 offers a £1,500 reduction.
The government says a vehicle’s band depends on the environmental impact of its production. Only the cleanest cars qualify for the band 1 discount, which is believed to favor European-built EVs over lower-cost cars manufactured in Asia.
Chinese and South Korean production relies more heavily on fossil fuel-derived energy. Many Chinese brands like MG, BYD and GWM are expected to miss out on the grant because of this factor.
The rules could also affect South Korea’s EV leaders Hyundai and Kia – both companies have announced their own £3,750 discounts since the grant was revealed.
Several other manufacturers have announced their own discounts ahead of the grant becoming active. European brands including Fiat, Volvo, Smart and the VW Group’s Volkswagen, Seat/Cupra and Skoda have all cut prices on multiple EVs by up to £3,750.
