The UK government has committed £650 million to a new Electric Car Grant that’ll cut up to £3,750 from qualifying electric cars priced under £37,000.
After months of pressure from car makers, the scheme targets affordability and aims to boost new car sales. The industry has welcomed the move – manufacturers had warned that without government support, ZEV mandate targets would be impossible to meet.
Fifty models from 27 brands currently qualify for the scheme.
Notable exclusions include Tesla, Audi and BMW, though some manufacturers may adjust pricing to bring models under the threshold.
How the Electric Car Grant Works
Car makers must apply to add vehicles to an approved list. Once approved, they’ll automatically apply discounts to list prices.
Customers won’t need additional paperwork.
The grant operates on two bands based on environmental credentials. Band one cars get the full £3,750 discount while band two receives £1,500 off. Banding relies on verified Science-Based Targets for carbon emissions from vehicle and battery production.
Basic qualification requirements include:
- WLTP range of at least 100 miles
- Zero tailpipe emissions
- Battery warranty covering 70% usable capacity for eight years or 100,000 miles
Applications opened July 16. The digital sales system launches August 11, though the Department for Transport expects grants to be available sooner once applications get approved.
Eligible Vehicles
As of July 16, these models start under £37,000. Higher-spec variants may exceed the threshold:
| Model | Starting price | Model | Starting price |
| Dacia Spring | £14,995 | Peugeot E-208 | £30,150 |
| Leapmotor T03 | £15,995 | BYD Dolphin | £30,205 |
| BYD Dolphin Surf | £18,650 | Volkswagen ID.3 | £30,860 |
| Fiat Grande Panda | £21,035 | Citroen E-Berlingo | £31,240 |
| Citroen E-C3 | £22,095 | Toyota Proace City Verso | £31,995 |
| Renault 5 | £22,995 | Peugeot E-Rifter | £32,250 |
| Hyundai Inster | £23,005 | Vauxhall Mokka | £32,430 |
| Citroen E-C3 Aircross | £23,095 | Renault Megane | £32,495 |
| Vauxhall Frontera | £23,995 | Mini Countryman | £33,005 |
| GWM Ora 03 | £24,995 | Kia EV3 | £33,005 |
| Fiat 500e | £25,035 | Volvo EX30 | £33,060 |
| Vauxhall Corsa | £26,780 | Omoda E5 | £33,065 |
| Mini Cooper | £26,905 | Alpine A290 | £33,500 |
| Renault 4 | £26,995 | Alfa Romeo Junior | £33,905 |
| MG4 | £26,995 | Smart #3 | £33,960 |
| Citroen E-C4 | £27,650 | Vauxhall Astra | £34,130 |
| MG5 | £28,495 | Hyundai Kona | £34,500 |
| Citroen E-C4 X | £28,715 | Peugeot E-2008 | £35,400 |
| Mini Aceman | £28,905 | Cupra Born | £35,690 |
| Smart #1 | £29,960 | Vauxhall Grandland | £36,455 |
| Abarth 500e | £29,985 | MG4 XPower | £36,495 |
| Ford Puma Gen-E | £29,995 | Leapmotor C10 | £36,500 |
| Jeep Avenger | £29,999 | Abarth 600e | £36,985 |
| Suzuki e Vitara | £29,999 | KGM Torres EVX | £36,995 |
| Fiat 600e | £30,035 | Skywell BE11 | £36,995 |
Cars like the £37,195 Renault Scenic may receive minor price cuts to qualify.
Best EVs Under £37,000
While plenty of models should qualify, here are five standouts:
Renault 5
- Current price: £22,995
- Price after band one grant: £19,245
- Eligible variants: Evolution; Techno; Iconic Five, Roland Garros
The Renault 5 delivers style, clever tech and city-friendly practicality in a five-door package. Even before the grant, it’s great value – with nearly £4,000 off, it’s a steal.
Basic models include LED lights, two-zone climate control, cruise control and 199-mile range from a 40kWh battery.
Top-end cars offer up to 250 miles from a 52kWh unit, a more powerful 148bhp motor and premium features while staying well below the threshold.
Citroen E-C3
- Current price: £22,095
- Price after band one grant: £18,345
- Eligible variants: Plus; Max
The Citroen E-C3 combines crossover looks with supermini dimensions. It delivers up to 199 miles from its 44kWh battery and class-leading comfort thanks to Advanced Comfort seats and suspension.
Even basic Plus versions feature 17-inch alloys, LED lights, parking sensors and a 10.25-inch infotainment system.
Max trim should also qualify for the grant.
Kia EV3
- Current price: £33,005
- Price after band one grant: £29,255
- Eligible variants: EV3 Air
Kia’s EV3 continues the brand’s electric excellence. This compact SUV offers impressive space and refinement that rivals larger cars.
Only entry-level Air grade falls under £37,000, but still brings heated seats and steering wheel, smart highway assist and a reversing camera.
Both battery versions should qualify – the 51.3kWh unit delivers 270 miles while the 81.4kWh model reaches 376 miles.
Skoda Elroq
- Current price: £31,510
- Price after band one grant: £27,760
- Eligible variants: SE 50; SE L 60; Edition 60
The Elroq ticks similar boxes to the EV3. Three battery and motor options give more flexibility, with the two smaller batteries and three lowest trims staying under £37,000.
SE 50 manages 233 miles from a 52kWh battery with wireless phone mirroring, reversing camera and 19-inch alloys.
SE L 60 pushes range to 366 miles and adds heated seats plus sat nav. Edition 60 brings sportier styling and adaptive cruise control.
Vauxhall Grandland
- Current price: £36,455
- Price after band one grant: £32,705
- Eligible variants: Design
The Vauxhall Grandland offers proper family SUV space for thousands less than key rivals. Vauxhall’s decision to price every version below the £40,000 Expensive Car Supplement threshold pays off here.
Design trim could drop below £33,000 with the grant applied.
It’s not the most exciting to look at or drive, but the Grandland provides family space, essential kit and solid ride quality. Even base Design gets a 73kWh battery good for over 300 miles and competitive 160kW charging.
