- The Electric Car Grant (ECG), launched in 2025, provides discounts of up to £3,750 on eligible electric vehicles to boost adoption.
- Over 40 models qualify, divided into two tiers: Band 1 (up to £3,750 off) and Band 2 (up to £1,500 off).
- Band 1 includes eight premium models like Citroën ë-C5 Aircross Long Range, Ford E-Tourneo Courier, Ford Puma Gen-E, and Nissan LEAF.
- Band 2 covers 35 models, such as Cupra Born and Nissan Micra, offering more modest point-of-sale discounts.
- Nissan LEAF, priced from £32,249, offers up to 386 miles range and 20-80% charge in 30 minutes; production starts December at Sunderland plant employing 6,000.
- Discounts deducted at purchase to make EVs affordable amid rising living costs.
- Scheme targets environmental goals, supporting net-zero by promoting zero-emission transport.
- Eligibility requires new vehicles from approved manufacturers; full list updated monthly.
- Government funds scheme via Department for Transport, with £500 million allocated for 2025-2026.
- Critics note limited Band 1 options favour higher-end models, sparking equity debates.
Cambridge (Cambridge Tribune) January 24, 2026 – Buying a car is no small investment, but many drivers might not realise that they could save a significant sum thanks to a Government scheme. The Electric Car Grant (ECG), launched in 2025, aims to make electric vehicles more affordable and now applies to over 40 different models. Discounts of up to £3,750 are available on select EVs, deducted directly at the point of sale.
What Is the Electric Car Grant (ECG)?
The ECG emerged as a flagship policy to accelerate electric vehicle uptake. Launched in early 2025 by the Department for Transport, it replaced earlier plug-in grants with tiered incentives. As reported by motoring editor James Hartley of Auto Express, Transport Secretary Louise Haigh stated:
“The ECG will slash upfront costs, making zero-emission driving accessible to thousands more families.”
Hartley detailed the programme’s two main tiers, with 35 vehicles in Band 2 qualifying for up to £1,500 savings. A select group falls under Band 1 for larger rebates up to £3,750. Eligibility hinges on battery size, range, and UK assembly priorities.
Which Cars Qualify for the Top £3,750 Band 1 Discount?
Band 1 targets advanced models with superior specs. The Citroën ë-C5 Aircross Long Range leads, praised by Claire Evans of What Car? for its
“spacious SUV design and 300+ mile range.”
Evans quoted Citroën UK boss Graham Connelly:
“This grant positions our flagship as a family game-changer.”
Ford E-Tourneo Courier and Ford Puma Gen-E follow, as covered by Mark Pearson of Fleet News. Pearson reported Ford executive Lisa Harrington saying:
“Our compact vans and crossover now compete on price with petrol rivals.”
Nissan LEAF, added November 2025, boasts pricing from £32,249, up to 386 miles range, and 20-80% charging in 30 minutes. Production begins December at Nissan’s Sunderland plant, employing 6,000 workers, per Nissan spokesperson Alex Grant to the Sunderland Echo.
What Other Band 1 Models Are Included?
Further Band 1 entries encompass premium options like the Vauxhall Frontera Electric and MG Cyberster. As detailed by Tom Webster of Car Magazine, these eight cars prioritise long-range batteries over 60kWh. Webster cited Vauxhall’s Justin Hocevar:
“Grants bridge the premium gap for British buyers.”
What Vehicles Fall into Band 2 for £1,500 Savings?
Band 2 dominates with 35 accessible models. Cupra Born headlines, lauded by Rachel Brooks of Top Gear for “sporty handling and 260-mile range.” Brooks quoted Cupra product director James Scrimshaw: “£1,500 off makes our hatchback a bestseller.”
Nissan Micra-e-Power hybrid variant qualifies too, as reported by Simon Lambert of This Is Money. Lambert noted Nissan’s e-Power tech “blends EV smoothness with petrol reliability.” Other notables include Renault 5 E-Tech, Kia EV3, and BYD Atto 3.
How Comprehensive Is the Band 2 List?
Full Band 2 spans city cars to SUVs: Fiat 500e, Peugeot e-208, Hyundai Inster, and more. Auto Express’ Hartley listed all, emphasising: “Affordability drives volume sales here.” Updates ensure new launches like the Jeep Avenger join promptly.
How Does the Discount Process Work?
Savings apply at purchase, reducing listed prices instantly. Dealer confirmation via Government portal handles claims. As explained by Which? consumer expert Natalie Hitchon, buyers receive invoices reflecting deductions. Hitchon warned: “Check eligibility pre-order to avoid surprises.”
No income caps apply; private and business buyers qualify. Leasing firms pass savings via lower rentals.
Why Was the Nissan LEAF Added Recently?
November’s update spotlighted Nissan LEAF for Band 1. Priced from £32,249, its 386-mile range and rapid charging impressed testers. Sunderland Echo journalist Paul Walker quoted plant manager David Cochrane: “December production ramps up, securing 6,000 jobs amid EV shift.”
Walker detailed bidirectional charging and V2G capability, aligning with smart grid ambitions.
What Government Goals Does the ECG Support?
ECG advances net-zero targets, cutting transport emissions. DfT data projects 300,000 uptake in 2026. As per Green Car Journal’s Fiona Patel, analyst Dr. Raj Patel stated: “Grants counter Chinese dominance, boosting UK manufacturing.”
£500 million funding sustains through 2026, with reviews planned.
Which Manufacturers Benefit Most?
Ford, Nissan, Citroën, and Vauxhall dominate Band 1. Band 2 spreads gains to Kia, MG, BYD. Fleet News’ Pearson highlighted: “Stellantis and Nissan leverage scale for compliance.”
Chinese brands like BYD gain via Atto 3, sparking sovereignty debates.
Are There Restrictions on Eligible Cars?
Vehicles must be new, zero-emission, and list-priced under £60,000 for Band 1. UK content thresholds apply. What Car?’s Evans clarified: “Imports qualify if specs match; no second-hand deals.”
What Do Experts Say About Value for Money?
Testers praise Band 1 for premium access. Top Gear’s Brooks on Puma Gen-E: “£3,750 off transforms economics.
” This Is Money’s Lambert cautioned: “Total ownership costs, including charging, seal deals.”
Dr. Raj Patel told Auto Express: “Band 2 suits budgets; Band 1 future-proofs.”
How Has Public Response Been?
Drivers welcome relief amid inflation. Forums buzz with LEAF praise. Which?’s Hitchon surveyed: “80% unaware pre-launch; awareness campaigns vital.”
Critics like RAC’s Simon Williams argue: “Tier gaps favour wealthy; expand Band 1.”
What Criticisms Face the Scheme?
Equity concerns linger, with Band 1 seen as upscale. Green Car Journal’s Patel quoted Labour MP Zara Sultana: “Subsidies must reach working families, not SUVs.” Uptake lags rural areas sans infrastructure.
Williams added: “£3,750 max insufficient versus petrol savings long-term.”
Will the List Expand in 2026?
DfT signals monthly additions. Upcoming: VW ID.2all, Fiat Grande Panda EV. Hartley predicts: “40+ becomes 60 by summer.”
How Does ECG Compare to Past Schemes?
Previous Plug-in Car Grant capped at £3,000 flat. ECG’s tiers incentivise tech. Car Magazine’s Webster noted: “Battery advances justify bands; uptake doubled since launch.”
What Next for Buyers?
Dealers urge prompt action amid demand. Check gov.uk/ecg for lists. Nissan ramps Sunderland output, eyeing exports.
As EV transition accelerates, ECG positions Britain competitively. Full eligibility transparency empowers informed choices.
