First car models approved for £1,500 discount to turbocharge the move to electric
Source: gov.uk (2025-08-04)

The Electric Car Grant will make owning an electric car cheaper, easier and a reality for thousands more people across the UK.

- the price of 4 Citroën models will be slashed by £1,500 - putting money in people’s pockets as part of the Plan for Change
- first 4 electric vehicles (EVs) confirmed for discounts through the £650 million Electric Car Grant – with more models to follow in the coming days and weeks
- part of government £4.5 billion investment to make it easier and cheaper to own an EV by cutting costs, backing industry, and growing the UK’s charging network by 27% in the last year
Drivers across the UK can save £1,500 on new electric vehicles, with the first eligible models confirmed today (5 August 2025), as government makes owning an EV cheaper and easier for thousands of people.

See a list of eligible cars (https://www.gov.uk/plug-in-vehicle-grants/cars).

Transport Secretary Heidi Alexander has confirmed buyers can enjoy discounts of £1,500 off 4 Citroën models – the Citroën ë-C3, ë–C4, ë-C5 and the ë-Berlingo - from today. The discount will be automatically applied in the purchase of the vehicle and customers do not need to complete any paperwork.

The 4 models are the first to be approved for the discounts under the government’s new £650 million Electric Car Grant (https://www.gov.uk/government/news/discount-of-up-to-3750-on-electric-cars-set-to-slash-costs-for-thousands) (ECG) scheme – which will continue to knock money off the price of new electric cars as more models are approved in the coming days and weeks.

The ECG offers carmakers the chance to apply discounts at the point of sale for new eligible EVs which are measured against the highest manufacturing sustainability standards.

The grant will help carmakers boost their sales, creating jobs and driving investment in the face of global economic headwinds, with £650 million of government funding available until the 2028 to 2029 financial year.

The approval of the first 4 models come as over 17,300 public chargepoints have been added to the UK network since July 2024 – a 27% increase on the year.

With more than 82,000 public chargepoints now available, one chargepoint added every half an hour, and over 100,000 on the way in the coming years, the government is building the infrastructure drivers need to make the switch with confidence, while supporting jobs and saving people money to deliver the Plan for Change (https://www.gov.uk/missions).

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.

Once again we’re delivering our Plan for Change by standing firmly on the side of motorists and manufacturers, driving down costs for consumers, supporting jobs and putting money back in people’s pockets.

Greg Taylor, Managing Director, Citroën UK

We welcome the support of the Electric Car Grant and are delighted to be the first to have our electric range, including the New ë-C3, New ë-C4, New ë -C5 Aircross and ë-Berlingo, approved and eligible. At Citroën we want everyone to have the opportunity to make the switch to an electric car and this support will help make our cars more accessible for our customers.

RAC Head of Policy, Simon Williams said:

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.

With many drivers citing upfront costs as a key barrier to buying an EV, the discounts will bring down the price of electric cars to more closely match their petrol and diesel counterparts. Drivers can also save up to £1,500 a year in fuel and running costs when switching to an EV.

The move follows the department’s £63 million package (https://www.gov.uk/government/news/new-63-million-boost-for-britains-electric-vehicle-revolution) to boost charging infrastructure across the UK, including by making it easier to charge at home for people without a driveway. This will help drivers charge on their home electricity rates and run their EV for as little as 2p a mile – that’s London to Birmingham for £2.50.

The new Electric Car Grant, which opened to applications from manufacturers last month with discounts of up to £3,750 available, is the latest in a series of moves showing the government is on the side of British drivers. The grant follows a record £1.6 billion invested to tackle potholes and fuel duty frozen at 5p until spring 2026, saving the average motorist on average £59 a year.

The government is working closely with the industry to make the discounts available to drivers quickly, with new guidance published (https://www.gov.uk/government/publications/how-to-apply-for-vehicle-eligibility-for-the-electric-car-grant) by the Department for Transport to help manufacturers apply as easily as possible.

In total, the government is investing £4.5 billion to turbocharge the switch to EVs, securing the UK’s position as a world-leader in electric vehicle adoption - with Britain the largest EV market in Europe in 2024 and sales up a fifth on the previous year - while helping put more money in people’s pockets.

This latest move comes alongside the Zero Emission Vehicle (ZEV) Mandate (https://www.gov.uk/government/news/backing-british-business-prime-minister-unveils-plan-to-support-carmakers), which requires manufacturers to sell increasing percentages of zero emission vehicles each year. Recent changes to the mandate give industry the certainty, stability and support they’ve been asking for, alongside crucial trade deals with the US, India and the European Union to support the UK’s automotive sector and protect jobs following the recent global economic headwinds.

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