In July 2025, the UK government launched the Electric Car Grant (ECG)—a bold move to boost EV uptake and help you save. The grant offers:

• Up to £3,750 off brand-new electric vehicles priced under £37,000, depending on their environmental credentials.

• Two-tier structure:

  • £3,750 for the greenest vehicles (highest sustainability standards)

  • £1,500 for vehicles meeting minimum criteri

From 16 July 2025, manufacturers can apply for eligibility, and the grant is applied automatically at the point of sale—no admin for you.

This £650 million fund runs until the 2028/29 financial year, or until funds run dry.

What’s Trending Now

• Citroën was first in the queue: models like the ë-C3, ë-C4, ë-C5 Aircross, and ë-Berlingo landed the £1,500 discount—no paperwork needed.

• As of 9 August 2025, 13 more models from Nissan, Renault, and Vauxhall joined the scheme—with £1,500 off each.

• So far, none of the eligible cars are getting the full £3,750 yet.

• Chinese brands—like BYD and MG—have so far been excluded, sparking a mix of criticism and manufacturer-led alternative incentives like BYD’s free servicing offers.

Read Also: How to Save on Public Transport in the UK

Smart UK Money-Saving Tips: How to Max Out the ECG

1. Scope Out Eligible Models Early

• Hark back to Citroën, Nissan, Renault, Vauxhall—and more likely to be added soon. Stay tuned to GOV.UK and motoring press. Once branded models hit showrooms with discounts, you’re good to go—just watch that price tag!

2. Check Production Sustainability

• Want that juicy £3,750? Only cars with strong Science-Based Targets and sustainability credentials qualify. Many are on the lower tier at £1,500—for now.

3. Remember: No Forms, No Fuss

• The grant is applied automatically at the dealership or lease point of sale—no extra admin for you.

4. Leverage Salary-Sacrifice Deals

• If your workplace offers a salary-sacrifice car scheme, you could combine it with the ECG for serious savings—think 20–50% off, plus the low 3% Benefit-in-Kind tax.

5. Don’t Forget Running Costs

• EVs can save you up to £1,500 a year on fuel and maintenance. Combine this with the grant, and you’re looking at genuinely lower total costs.

6. Stay Alert to Exclusions

• Blue Badge holders may be hit. A new rule (effective mid-August) could exclude around 11,000 disabled drivers whose accessible vehicles exceed the £37k cap—even if needed adaptations push the price up.

7. Prepare for Market Shifts

• The uncertainty around which cars qualify has already caused a 5% drop in new car registrations and slowed EV uptake in July. If you’ve been waiting, speak to dealers early.

Where the Scheme Might Fall Short (Heads-Up for Buyers)

Limited Scope of Vehicles

• Many models are yet to be approved—and those approved so far only qualify for the lower-tier discount. The high-tier £3,750 models remain rare for now.

Bias Against Certain Manufacturers

• If you prefer Chinese-made EVs, you may be disappointed. These are currently excluded due to production emissions, though some brands are rolling out their own discounts.

Risk of Excluding Disabled Drivers

• The pricing cap penalises practicality—many highly accessible EVs come in over £37k once adaptations are added. That means Blue Badge users may miss out unless they’ve already secured adaptations themselves.

Grants Can Run Dry Early

• The ECG’s £650m pot runs until 2028/29—but if uptake is high, funds could be exhausted early. Best to act sooner rather than later.

Dealer Delays and Confusion

• Some dealers were caught off guard, delaying orders until eligibility was confirmed. Keep a close eye on stock and ask about ECG status before placing an order.

Read Also: How to Save on Fuel Costs: 10 Proven Driving Tips to Adopt

Real-Life Scenario: You’re in the Market—What You Do

1. Watch Government Lists & Motoring Press – Track updates daily.

2. Test Drive Eligible EVs – prioritise those eligible for £1,500 and keep an eye out for higher-tier qualifications.

3. Combine ECG with Workplace Salaried Sacrifice (if available) – a one-two punch to drastically cut costs.

4. Move Quickly to Secure Your Deal – once your chosen model hits eligibility, strike while grant funds last.

5. Plan for Your Use Case – if you need accessible adaptations, budget accordingly, since grant may not cover the adapted price.

Wrap-Up: Is the new UK Electric Vehicle Grant worth your time?

Absolutely—but only if you’re savvy. The ECG (launched July 16, 2025) is a solid money–saving opportunity, offering £1,500 or even potentially £3,750 off qualifying EVs under £37,000, with no paperwork required. Pair it with employer salary-sacrifice schemes and EV-running-cost savings, and it truly transforms the affordability equation.

Just be mindful: not all brands (especially Chinese EVs) are in yet, accessible vehicles might miss out, and grants could run out quicker than expected.

Your best move? Be alert, move fast, and aim to supercharge your savings both at purchase and into ownership.