UK reintroduced Electric Car Grant offers up to £3,750 discount on EVs under £37,000
By Eve
The UK government brought back the Electric Car Grant in July 2025, providing point of sale discounts up to £3,750 for new electric vehicles priced at or below £37,000. The full discount applies only to the most sustainable Band 1 models, with most EVs receiving a lower £1,500 discount. The market has seen an influx of affordable EVs from value brands including Citroen, Dacia and Vauxhall, alongside new Chinese entrants, expanding choice for buyers and lessees.
Why it matters: The grant structure creates a two tier incentive that may influence procurement decisions toward Band 1 vehicles, while the expanded affordable EV market from established and Chinese brands increases fleet electrification options for operators working within tighter budgets.