UK Government announces first vehicles qualifying for the ECG

As the UK Department for Transport (DfT) has now announced, 17 vehicles now qualify for the government subsidy. Models announced include the Renault Alpine A290, Renault 5, Nissan Micra, Nissan Ariya (available from Wednesday), and the full Citroën and Vauxhall electric range. As mentioned above, Citroën was the first carmaker approved for the ECG on 5 August.

The UK announced the new subsidy scheme last month and it has so far not been clear which carmakers and/or models will benefit. The governemnt did announce that the ECG has a total volume of 650 million pounds, and that vehilces with a listing price of less than  £37,000 could be eligible for as much as £3,750 in subsidies.

However, as we explained in detail in this previous article, price is not the only criterion. At the core of the new Electric Car Grant is the requirement that manufacturers demonstrate verifiable commitments to decarbonisation. The battery production location, as well as the vehicles assembly location also play an important role.

Carmakers have been able to apply for the ECG since 16 July. As the government will assess every application individually, some manufacturers have announced their own grants, available immediately. Some carmakers, especially those with production locations in China, also offered rebates because they will likely not qualify for the ECG at all. We compiled a list of all manufacturer grants, which we will continue to update.

The DfT points out that the £650 million scheme forms part of the government’s £4.5 billion investment to accelerate the transition to zero-emission transport. Discounts are applied automatically at the point of sale. As the price cap is 37,000 pounds, the focus is obviously on more affordable models.

“With discounts on 17 car models announced this week alone, we’re delivering on our promise to make it easier and cheaper for families to go electric,” said Transport Secretary Heidi Alexander.” This is about backing drivers, putting money back into people’s pockets and creating the jobs and growth that will drive Britain forward.”

The RAC’s head of policy, Simon Williams, called the update “yet more welcome news,” adding: “Those looking to make the switch now have a wider choice of better value vehicles than ever before. This can only help speed up the transition to electric motoring.”

Carwow CEO John Veichmanis said demand for EVs under £37,000 jumped 124% in the week after the scheme’s relaunch. “By lowering upfront costs, the grant plays a pivotal role in turning EV curiosity into commitment,” he said.

Manufacturers also welcomed the move. James Taylor, managing director of Nissan Motor GB, described it as “a clear signal” of government commitment to electrification. Vauxhall’s Steve Catlin emphasised support for British-built models, while Renault UK’s Adam Wood said the grant would “significantly accelerate” accessible EV adoption.

The new purchase subsidies come alongside the Zero Emission Vehicle (ZEV) Mandate, requiring manufacturers to sell rising percentages of zero-emission vehicles annually. However, despite strong growth in recent months, the BEV market share so far this year, at 21.6%, remains significantly below the 28% required under the UK’s Zero Emission Vehicle mandate. According to SMMT, manufacturers have spent more than £6.5 billion since regulation commenced to sustain EV demand through discounting and tactical channel use. That is why the British trade association has been calling for new subsidies.

gov.uk