Electric Car Grant

The Electric Car Grant is a £650 million government initiative designed to support the electric vehicle industry and drivers by reducing the upfront costs of new, eligible electric vehicles (EVs) priced at or under £37,000. The grant provides automatic discounts applied by dealerships at the point of purchase, with no additional paperwork required from buyers. The grant offers two discount tiers: Band 1 cars receive a maximum discount of £3,750, while Band 2 cars receive a maximum discount of £1,500. Eligible vehicles must be M1 passenger vehicles producing 0gCO2/km at the tailpipe, have a minimum battery range of 100 miles (160km), and meet specific warranty and sustainability criteria. This grant is available from July 15, 2025 through March 31, 2030, and aims to make low-cost, sustainably manufactured EVs more widely available. Consumers do not apply for the grant directly; instead, the seller automatically includes it as a discount in the purchase price. Vehicle dealerships and manufacturers apply for the grant through an online portal to pass the discount to consumers.