One month on: How the UK’s new Electric Car Grant is shaping the electric car market

29 August 2025

It’s been just over a month since the UK Government launched its new Electric Car Grant (ECG), and the impact is already being felt across the EV market. From rising customer interest to manufacturer-led discounts, the scheme is beginning to influence buying and leasing decisions ahead of the busy September registration period.

What’s the grant about?

Unveiled on 15 July 2025, the ECG provides up to £3,750 off the price of a new electric car priced at or below £37,000. The scheme is split into two tiers:

£3,750 grant for the greenest, most sustainably produced EVs.
£1,500 grant for models meeting minimum environmental criteria.

Alongside the grants, the government pledged investment in charging infrastructure; including support for on-street charging and NHS sites to make EV ownership more practical for more drivers.

Early impact: big interest, limited models

The scheme sparked a surge in EV enquiries. With some car selling and leasing platforms reporting a 124% increase in interest for EVs under £37,000, showing strong demand for more affordable models.

However, to date only two cars have qualified for the full £3,750 grant – the Ford Puma Gen-E and Ford e-Tourneo Courier. With around two dozen others at the band 1 £1,500 level. Many drivers are still waiting to see if their preferred EV would qualify.

A note on the stunningly popular Puma... The Ford Puma was the UK's bestselling car in 2024, so it's top £3,750 Electric Car Grant eligibility is just another feather in it's already popular cap. With the Gen-E Ford combined the Puma's smart design and everyday practicality with a smooth, punchy EV motor. So for existing Puma fans the electric version is a natural evolution of a tried and tested car, and a strong rival to the Peugeot E-2008, Jeep Avenger, and Vauxhall Mokka Electric.

ECG eligible electric cars

Currently (late August), the list of eligible cars stands at 28 models:

£3,750 grant (Band 1)

Ford Puma Gen-E
Ford E-Tourneo Courier

£1,500 grant (Band 2)

Citroën ë-C3 and Citroën ë-C3 Aircross
Citroën ë-C4 and Citroën ë-C4 X
Citroën ë-C5 Aircross
Citroën ë-Berlingo
Cupra Born
DS DS3
DS N°4
Nissan Ariya
Nissan Micra
Peugeot E-208
Peugeot E-2008
Peugeot E-308
Peugeot E-408
Peugeot E-Rifter
Renault 4
Renault 5
Renault Alpine A290
Renault Megane
Renault Scenic
Vauxhall Astra Electric
Vauxhall Corsa Electric
Vauxhall Frontera Electric
Vauxhall Grandland Electric
Vauxhall Mokka Electric
Volkswagen ID.3

Car makers step in

With uncertainty around which cars qualified, several manufacturers quickly rolled out their own discounts to make EVs more appealing:

Hyundai: up to £3,750 off the Inster city car, and £1,500 on the Kona Electric, Ioniq 5/6/9.
MG: £1,500 off the MG4 and MG5 EVs.
Volvo: £1,500 off the EX30.
GWM ORA: a £3,750 “Green Grant” on the ORA 03.
Alfa Romeo: £1,500 off the Junior Elettrica.

This move means many customers can benefit immediately, without waiting for the official list to expand.

Market trends one month in

Registrations up: EV registrations in July grew 9.1% year-on-year, though momentum remains mixed.
Production rising: UK car production rose by 5.6%, showing growing confidence in the market.
Global shifts: Tesla’s European sales dropped by 40%, while Chinese brand BYD saw its registrations more than triple.

What it means for drivers and leasers

The Electric Car Grant has already helped bring more affordable EVs into reach, particularly for those considering their first switch from petrol or diesel. With leasing, these discounts can make monthly payments even more competitive.

As more models join the eligible list and manufacturers continue to boost offers, the coming months could be the ideal time to secure a great deal on a new electric lease.

Our top picks

Looking to take advantage of the Electric Car Grant? Explore our latest EV leasing offers and see how much you could save on a brand-new electric car.

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