Government limits Electric Car Grant for pricier variants

To qualify for the UK's Electric Car Grant (ECG), vehicles need to be zero-emission and start below 37,000 pounds. Until now, the grant also applied to more expensive trim levels as long as the base version of the same model met the price limit. As the number of eligible vehicles grows, the UK government has now introduced a price cap of £42,000. (UPDATE BELOW)

Ford puma gen e e transit courier e tourneo courier craiova — Image: Ford

As the British portal Autocar reports, the change affects, for example, the Nissan Ariya. Previously, all front-wheel-drive versions qualified for the £1,500 discount, including the £44,500 Evolve trim. This was because the EV’s entry-level variant costs less than £37,000. Under the new rules, the Evolve trim and other higher-priced variants will no longer receive support.

“If a vehicle is part of the same interpolation family as a variant version that has an RRP below £37,000, then the interpolation family, up to a maximum price limit of £42,000, will be treated as having met the price requirement,” the government website states.

The change takes effect today, with the Department for Transport (DfT) set to publish an updated list of eligible vehicles. A DfT spokesperson told Autocar: “The maximum price limit ensures only eligible cars priced at the lower end of the market can qualify for the discounts, ensuring government support is targeted.”

Introduced in July, the subsidy scheme is part of the government’s broader £650 million programme to encourage electric vehicle uptake and support the transition away from fossil fuels. 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.

Industry analysts note that the revision addresses a loophole that allowed more expensive trims to benefit from the scheme without the purchase price reflecting the intended affordability goals. The £42,000 cap aims to focus the grant on entry-level EVs while maintaining an incentive for consumers to adopt zero-emission vehicles.

The announcement follows the first vehicles to benefit from the full £3,750 grant: the Ford Puma Gen-E and the Ford E-Tourneo Courier. An additional four models – the Peugeot E-308, Peugeot E-408, DS 3 and DS No4 – have qualified for the lower £1,500 discount. In total, 28 electric vehicles now meet the criteria, with more expected to be added in the coming weeks.

Update 06 October 2025

Skoda was able to add more of its vehicles to the eligibility list for the UK Government’s Electric Car Grant with the launch of a new SE L 85 variant of its Enyaq electric SUV. The model is positioned below the Edition 85 variant and is the first Enyaq available with a 77kWh battery.

In terms of charging, using a DC rapid charging station, speeds of up to 135kW are possible. A 10-80% charge when connected to a suitable DC rapid charger can be completed in 28 minutes. This allows for a range of up to 359 miles. Prices start at £41,980 OTR, and a ‘Plus’ optional package is available, priced at £2,500.

autocar.co.uk, fleetnews.co.uk, gov.uk, skodamedia.com, fleetnews.co.uk (both update)