A red electric car with its charging port open and a charging cable plugged in.

Electric Car Grant: What is it and which EVs are eligible for discounts?

Automotive Content Editor

7 minute read|3rd Nov 2025

Looking to buy or lease a new electric car? The incentive to do so is much greater from 2025 with the Government’s £650 million electric car grant scheme.

Designed to support the UK’s transition to electric motoring ahead of a 2030 ban on the sale of new petrol or diesel cars, the electric car grant applies a discount of up to £3,750 on eligible EVs with a starting price at or below £37,000.

There are two bands for the grant, with certain cars eligible for the maximum discount and others receiving a lower discount rate of £1,500.

But how does it all work? And which cars have been confirmed as eligible so far? Our guide tells you everything you need to know about the UK electric car grant.

Electric car grant: eligibility criteria

To be eligible for the electric car grant, any car needs to meet the following basic criteria:

It must produce zero tailpipe emissions.
Be classified as a new ‘M1’ passenger car (not used) with no more than eight seats.
Have an electric range of at least 100 miles on a charge according to WLTP tests.
Be offered with a warranty of at least 3 years/60,000 miles, along with a battery warranty of 8 years/100,000 miles.
Meet electrical safety and sustainability criteria – including a threshold for CO2 emissions produced from the manufacture of the car and the battery cells.
The manufacturer must hold a verified Science Based Target – a corporate emissions reductions goal aligned with the Paris Agreement.

The car must also have a starting price (recommended retail price, or RRP) at or below £37,000.

However, as long as the cheapest variant is under the limit, pricier variants that cost up to £42,000 can be eligible for the grant – as long as the battery size remains the same as the cheapest mode.

For example: the Renault Scenic E-Tech has a starting price of £35,495 in Techno form with an 87kWh battery pack. It has two trim levels that cost more than £37k, but as these just add equipment rather than increase the range or battery size, all versions can receive the grant.

You can find out more on how manufacturers apply for vehicle eligibility for the electric car grant on this Government website.

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Do I need to apply for the electric car grant?

You don’t have to do anything to benefit from the electric car grant. The discounts are applied at the point of sale automatically.

Carmakers must apply to the Government to have their cars assessed for grant eligibility. This includes submitting an application form and supporting evidence.

In this process, the Vehicle Certification Agency (VCA) assesses the technical criteria the car must meet, and the Office for Zero Emission Vehicles assesses the environmental criteria.

This process takes time – which is why months after the scheme was launched EVs receiving it are still being announced.

Applications don’t always have a positive outcome, so carmakers can appeal the decision. You can find out more on how manufacturers apply for vehicle eligibility for the electric car grant on this Government website.

What is the difference between Band 1 and Band 2 EV discounts?

So far, only a few electric cars have received the well-publicized maximum grant of £3,750. This is known as ‘Band 1’, and only applies to the most sustainably produced EVs.

Most EVs announced so far have only been eligible for ‘Band 2’. This is a lower standard that discounts a maximum of £1,500 of an electric car’s RRP.

So why do so few cars qualify for the £3,750 EV grant? The Government has only released some information on how the bands are determined.

As well as CO2 emitted during the vehicle’s production process, grant eligibility considers the carmaker’s supply chain emissions and use of renewable energy sources.

Emissions from the production of the battery pack account for 70% of the criteria targets, with vehicle assembly emissions weighted at 30%. Also considered is the carbon emissions from the electricity grid of the country the factory is based in.

Transport Minister Lilian Greenwood has stated that Chinese-assembled vehicles, such as the BYD Dolphin and MG 4, won’t qualify for the higher grant band – and may not be eligible at all.

A blue BYD Dolphin parked in an urban setting.

Cars produced in other countries such as South Korea and Mexico have also so far not been eligible for the EV grant. These countries have carbon-intensive electricity grids from sources such as coal-fired power stations.

Cars eligible for the Electric Car Grant: the full list

So far, the Government has confirmed the following cars are eligible for the Electric Car Grant:

Carmakers including Abarth, Alfa Romeo, Fiat, Hyundai, Kia, MG, Smart and Volvo have decided not to wait for eligibility, instead applying their own grant-style discounts to retail prices of electric cars.

Are vans and trucks eligible for an EV Grant?

Yes, there is a grant available for those looking to buy or lease new electric or plug-in hybrid vans – whether that’s individuals or a wider company.

A plug-in van grant discount of up to £2,500 is available on vans with a gross weight of less than 2.5 tonnes. These can be electric or PHEVs, but they must have quoted CO2 emissions of less than 50g/km and be able to travel up to 60 miles on a single charge.

Large vans (with a gross weight of between 2.5 and 4.25 tonnes) are eligible for a bigger discount of up to £5,000 off the purchase price.

Some small trucks (between 4.25 and 12 tonnes in gross weight) are eligible for a discount of up to £16,000, while large trucks (over 12 tonnes) have a maximum discount of £25,000.

There is an extensive list of vans and trucks eligible for the grant on the Gov.uk plug-in vehicle grants page.

Are taxis eligible for an EV grant?

Yes, there is a taxi-specific electric car grant which gives a discount of up to £4,000 off the retail price of a taxi.

To be eligible the vehicle must be a purpose-built taxi, have CO2 emissions of less than 50g/km (so plug-in hybrid taxis are eligible) and be able to travel at least 70 miles in electric-only mode.

Currently, the only taxi available for the grant is the LEVC TX (below).

A black LEVC TX taxi driving along a rural road.

Plug-in motorcycle grant

Zero emission motorcycles have long been able to receive the Government’s plug-in motorcycle grant. It was launched in 2016 to bridge the price gap between and petrol motorcycles.

It works in the same way as the electric car grant, and only applies to motorcycles with a recommended retail price of £10,000 or below. Trim variants above this price are not eligible, however.

The grant offers discount of up to 35% off the bike’s price, up to a maximum of £500. It runs until April 2026.

To be eligible, the motorcycle must have zero tailpipe emissions and be able to travel at least 31 miles between charges.

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*At least 10% of new customers pay this for single-vehicle Roadside (Basic). ^ T&Cs apply.

Electric Car Grant FAQs

Can I get a government grant for an electric vehicle?

Yes it’s possible to get grants for eligible zero emission vehicles including electric cars, vans and trucks, along with electric and plug-in hybrid taxis and even motorcycles.

Which cars are eligible for the £3,750 grant?

Currently only the Ford Puma Gen-E and Ford E-Tourneo Courier are eligible for the maximum ‘Band 1’ electric car grant of £3,750. Many other EVs are eligible for the lower £1,500 grant.

Is it worth buying an electric car in 2025?

Overall it’s never been a better time to buy an electric car, but that doesn’t mean they’ll suit everyone’s needs yet. If you can charge at home or at the workplace, it’s a great idea because electric cars are more affordable and capable than ever, with longer ranges, better technology and lower maintenance costs than petrol or diesel cars.