If you're considering buying a new electric vehicle (EV), you may be weighing up your options and looking for the most affordable deal. To make the switch easier, the UK government has introduced a new Electric Car Grant (ECG) that can make driving electric more affordable, offering savings of up to £3,750.
Many grants have been offered over the years to help support electric vehicle adoption, from discounts on cars to funding for home chargers and workplace charge points. The latest scheme is focused on making it easier to afford a new electric car by offering money off the purchase price.
Here's everything you need to know about what the new EV grant looks like, including how it works, who's eligible, and which cars are available.
- How does the Electric Car Grant work?
- How much can you save with the Electric Car Grant?
- Which cars are eligible?
- Other grants for electric cars
How does the Electric Car Grant work?
The Electric Car Grant is a new government scheme that provides discounts on new electric vehicles. The aim of this grant is to reduce the upfront cost of EVs to support the UK's transition to zero-emission transport.
The grant is only available on new electric cars priced at or under £37,000, and it doesn't require any separate application to receive the discount. Instead, it's applied automatically at the dealership when you order or lease an eligible vehicle.
To qualify, the vehicle must come from a manufacturer committed to reducing its environmental impact. This includes how the car is manufactured and how the battery is produced. Manufacturers must apply to have their vehicles approved for the grant, and the government decides which models meet the criteria for the discount.
You can also benefit from the grant if you're obtaining the vehicle through salary sacrifice or Personal Contract Hire (PCH), as long as the car meets the eligibility criteria and is ordered after 16 July 2025.
Some manufacturers are also running their own discount schemes labelled as grants. These offers may apply to vehicles that fall outside the official government criteria, such as cars priced above £37,000 or models not included on the approved list. So, depending on the brand, you might still be able to access a discount even if the car doesn't qualify for the government grant.
How much can you save with the Electric Car Grant?
There are two levels of discount available through the scheme, depending on how environmentally the vehicle is produced:
- Up to £3,750 off the greenest electric cars
- Up to £1,500 off other eligible models
The government has set aside £650 million for the scheme, which could support the purchase of more than 170,000 vehicles at the full £3,750 discount.
Because the grant is applied at the point of order, there is no paperwork or claims process for the buyer. This means the savings are included in your final price straight away, making it easier to budget whether you're paying upfront, financing, or leasing.
Some manufacturers also allow their own 'grant' discount schemes to be combined with other offers. For example, MG is offering £1,500 off as part of its own grant, along with a £1,000 test drive incentive, giving buyers a total saving of £2,500.
Which cars are eligible?
There are plenty of electric vehicles that qualify for the Electric Car Grant, with a wide range of body styles, price points, and features to suit different types of drivers.
A number of well-known brands have already confirmed eligible models, and many are offering additional discounts or promotions alongside the grant. Whether you're looking for a compact city car, family SUV, or versatile hatchback, there are plenty of options to choose from.
Here are just a few of the standout models currently expected to qualify for the grant:
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Hyundai Inster
Setting the standard for style and driving dynamics, now available with savings of up to £3,750
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Leapmotor C10
A practical electric SUV with long range, now available with savings of up to £3,750.
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Kia EV3
A compact electric hatch delivering solid range and practicality, now available with savings of up to £3,750
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MG ZS EV
A standout electric family car from the MG range, now available with savings of up to £2,500
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MGS5 EV
Everything you need in a versatile electric SUV, now available with savings of up to £2,500
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MG4 EV
Affordable, hi-tech, and good-looking, now available with savings of up to £2,500
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Hyundai IONIQ 5
A popular electric crossover for plenty of reasons, now available with savings of up to £1,500.
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Leapmotor T03
Quirky looks paired with a low price tag, now available with savings of up to £1,500.
Other grants for electric cars
In addition to the Electric Car Grant, there are a number of other government grants and schemes still available to support EV owners and businesses. These include grants for home chargers, workplace infrastructure, and more.
EV Chargepoint Grant
If you rent your home or live in a flat, the EV Chargepoint Grant can help make owning and charging an electric vehicle a bit more affordable. It covers up to 75 percent of the cost of purchasing and installing a home chargepoint, capped at £350.
It’s a great option for those who can’t access other home ownership incentives but still want the convenience of charging at home. To qualify, you’ll need access to private off-street parking and an eligible electric car.
Workplace Charging Scheme (WCS)
The Workplace Charging Scheme (WCS) is intended to help businesses, charities, and public sector organisations reduce their carbon footprint by offering support for on-site EV charging. The grant provides up to £350 per charging socket, with a maximum of 40 sockets per applicant.
This scheme is ideal for companies looking to support electric company vehicles or make it easier for employees to charge at work.
EV infrastructure grants for landlords and car parks
Landlords and building owners can apply for funding to support both chargepoints and the associated infrastructure. This includes wiring, groundwork, and electrical upgrades needed to support multiple chargepoints in residential or commercial car parks.
Frequently Asked Questions
If you live in a flat or rented property, you could get up to £350 off the cost of buying and installing a home EV charger through the EV Chargepoint Grant. You’ll need dedicated off-street parking and must use an approved installer.
While not always completely free, you can reduce the cost with the EV Chargepoint Grant (up to £350). Some manufacturers and leasing companies also run promotions where a charger and installation are included with your EV purchase or lease.
No, the main government grant only applies to new electric cars under £37,000. However, you may still be eligible for a home charger grant if you live in a flat or rented property.
Landlords can get up to £350 per socket to install EV chargers at rental properties through the EV Chargepoint Grant for Landlords. This supports up to 200 applications per year, and the property must have private off-street parking.
Find your next electric car with Evans Halshaw
Thanks to the Electric Car Grant, owning an electric car has never been easier or more affordable. With discounts applied automatically and plenty of great cars already approved for the scheme, it’s a simple, no-hassle way to save on your next EV.
You’ll find a great selection of eligible electric cars in our range, with something to suit every need and budget. To find out more about the grant or book a test drive, contact your nearest Evans Halshaw retailer today.
Prices and dates correct as of 31/07/2025 and are subject to change.
