The UK government's new £650 million Electric Car Grant (ECG) is officially underway, with the first two models qualifying for the maximum £3,750 discount. This landmark initiative is designed to address the high upfront cost of electric vehicles (EVs) and propel the country toward its 2030 emissions targets.
The Department for Transport has confirmed that the Ford Puma Gen-E and the Ford e-Tourneo Courier are the first two vehicles to be approved for the top-tier grant. This significant price reduction is automatically applied at the point of sale, making the new Puma Gen-E available from £28,495 and the e-Tourneo Courier from £32,190. The models secured the full grant by meeting the government's rigorous "sustainability criteria," which assesses factors like emissions from the production process and the manufacturer's use of renewable energy. This new approach to grants, which replaced the previous Plug-in Car Grant, is based on a two-tiered system to ensure that only the "greenest" vehicles receive the highest level of funding.
The announcement comes at a critical time for the UK's EV market, where sales have been struggling to keep pace with mandated targets. While new car registrations saw a positive trend in the first half of the year, EV adoption, while increasing, remains behind the government's 28% mandate for 2025. This shortfall has been a source of concern, with the government's 2030 ban on new petrol and diesel cars coming into sharp focus.
The new grant has already had a significant impact. According to Ian Plummer, commercial director at Autotrader, the announcement has caused the "highest uptick in consumer demand" for electric vehicles in three years. Transport Secretary Heidi Alexander praised the scheme, stating, "We’re putting money back in people’s pockets and making it easier and cheaper for families to make the switch to electric, by delivering discounts of up to £3,750 on EVs." She added that the measures are "driving competition in the UK EV market, boosting economic growth and supporting jobs and skills."
In addition to the two Fords receiving the maximum grant, 26 other popular electric models have been approved for a £1,500 grant. All eligible vehicles must have a list price of £37,000 or below. The new scheme not only applies to outright purchases but also to leasing and salary sacrifice schemes, making the savings accessible to a wider range of drivers.
The full list of electric vehicles currently eligible for the £1,500 grant includes several new additions from Peugeot and DS that were announced alongside the Ford models. This brings the total list of eligible vehicles to 28. More models are expected to be approved in the coming weeks as manufacturers submit their applications for assessment against the sustainability standards.
Full list of electric vehicles eligible for the £1,500 grant:
- Citroën: e-C3, e-C3 Aircross, e-C4, e-C4 X, e-C5 Aircross, and e-Berlingo
- Cupra: Born
- DS Automobiles: DS 3 and N°4
- Nissan: Ariya and Micra
- Peugeot: E-208, E-2008, E-308, E-408, and E-Rifter
- Renault: 4, 5, Megane, and Scenic
- Vauxhall: Astra Electric, Combo Life Electric, Corsa Electric, Frontera Electric, Grandland Electric, and Mokka Electric
- Volkswagen: ID.3