The UK government has introduced a new grant scheme offering £1,500 discounts on electric vehicles, with the first eligible models announced today (5 August 2025).
Four Citroën electric cars are now available with the discount: the ë-C3, ë-C4, ë-C5, and ë-Berlingo. The discount is applied automatically at purchase, requiring no additional paperwork from buyers.
The Electric Car Grant (ECG) is backed by £650 million in government funding, available until the 2028-2029 financial year. More vehicle models are expected to be approved in the coming weeks as other manufacturers apply to join the scheme.
To qualify, electric vehicles must meet specific manufacturing sustainability standards. The scheme allows carmakers to offer point-of-sale discounts, with grants of up to £3,750 potentially available for eligible models.
Transport Secretary Heidi Alexander said: "With the first four models approved today and more to come over the next few weeks, this summer we're making owning an electric car cheaper, easier and a reality for thousands more people across the UK."
Greg Taylor from Citroën UK welcomed the support, stating the grant would "help make our cars more accessible for our customers."
The initiative comes as the UK's charging infrastructure continues expanding. Over 17,300 public chargepoints have been added since July 2024 – a 27% increase bringing the total to more than 82,000 nationwide.
RAC Head of Policy, Simon Williams added: “It’s great to see the first qualifying models announced for the government’s new Electric Car Grant.
“Not only does this mean more drivers will benefit from the lower cost of running an electric vehicle, but it’s hopefully the sign of more to come from other manufacturers in the weeks ahead.
“With nearly 1.6 million battery electric vehicles on the road already, it’s a real boost for the switch to electric.”
According to the government upfront costs remain a key barrier for many potential electric vehicle buyers. The discount aims to bring electric car prices closer to traditional petrol and diesel vehicles.
Drivers can save up to £1,500 annually in fuel and running costs by switching to electric, with some able to run their vehicles for as little as 2p per mile when charging at home.
The grant forms part of a broader £4.5 billion government investment in electric vehicle adoption, positioning the UK as Europe's largest EV market in 2024.
See a list of eligible cars.