First Electric Car Models Approved for £1,500 Government Discount

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The UK Government has confirmed the first electric car models eligible for its new £1,500 discount under a scheme designed to accelerate the shift to cleaner transport. Four Citroën models, the ë-C3, ë-C4, ë-C5 Aircross, and ë-Berlingo, are the first to be approved under the Electric Vehicle (EV) Grant programme, which launched in mid-July 2025.

Part of a wider £650 million initiative, the programme offers buyers up to £3,750 off the purchase price of new electric cars priced at £37,000 or less. The final discount value, either £1,500 or £3,750, depends on how sustainably the vehicle is manufactured, with factors such as energy usage and battery sourcing considered under verified environmental standards.

The discount is applied automatically at the point of sale, meaning customers do not need to apply for it themselves. Approved models will be flagged by dealerships once verified through the scheme.

Government ministers say the scheme aims to make electric vehicles more affordable while rewarding sustainable manufacturing. The grant returns after being scrapped in 2022, with a new focus on encouraging the cleanest production methods across the global automotive supply chain.

Several major manufacturers, including Hyundai, Volvo, and MG, have already begun offering their equivalent discounts in anticipation of approval delays, highlighting frustration within the sector over the speed of the application process. Nonetheless, the first batch of eligible vehicles marks the start of what ministers hope will be a broader expansion of model availability in the coming months.

Officials have also cautioned that not all electric vehicles will qualify. Cars made in countries with heavy reliance on coal power, such as certain models from Chinese manufacturers, are unlikely to meet the programme’s sustainability criteria. In response, some Chinese brands are choosing to match the government discount with their offers to remain competitive in the UK market.

The EV Grant scheme will run until the end of the 2028-29 financial year or until funding is exhausted. Additional models are expected to be approved as manufacturers meet the environmental benchmarks set out in the scheme.

Consumers interested in taking advantage of the discount are advised to check eligibility directly with dealerships and confirm that the vehicle meets the grant criteria before purchase.