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The Fiat 500 Electric now qualifies for the full £3,750 discount under the UK government's £1.3 billion electric car grant scheme, bringing the total number of models eligible for the maximum amount to 12. More than 100,000 drivers have used the scheme since its launch in July 2025, with all other qualifying vehicles receiving a £1,500 discount. The Fiat 500 Electric offers up to 202 miles of range and joins models including the Alpine A290, Citroen e-C5 Aircross Long Range, Ford Puma Gen-E, Kia EV2 Long Range, Nissan Leaf, and Renault 5 (52kWh) on the full discount list.

Why it matters: The expansion of the grant scheme to include popular urban models like the Fiat 500 Electric signals growing government support for accessible EV adoption, which will drive demand for workplace and destination charging infrastructure. With 100,000 drivers already claiming the grant in under a year, charge point operators should anticipate accelerated fleet growth in the small and compact EV segments.

Citroen CEO Xavier Chardon announced at a Stellantis investor day that the iconic 2CV will return as an all-electric city car priced around £15,000, with a production launch in 2028 following a Paris Motor Show debut. The vehicle will be built at the Pomigliano d'Arco factory in Italy and designed for a new M1E vehicle class positioned between the £10,000 Ami quadricycle and the £20,000 E-C3 passenger car. Citroen describes the electric 2CV as part of a new wave of smaller, more affordable EVs aimed at European urban transport, alongside a planned mini Fiat Panda from parent company Stellantis.

Why it matters: A sub-£20,000 urban EV class creates a new charging infrastructure requirement for lighter, city-focused vehicles that may need different power profiles and locations than current passenger EVs. The 2028 timeline gives charge point operators four years to plan network coverage for this emerging affordable urban segment in European markets.

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.