Government Grant Approves Electric Vehicles from Citroën at a £1,500 Discount
The UK Government has recently launched a new £650 million Electric Car Grant (ECG), as part of a £4.5 billion investment package to accelerate the transition to electric motoring in the country. The first four electric vehicles eligible for the grant are the Citroën e-C3, e-C4, e-C5 Aircross, and e-Berlingo.
Citroën has become the first brand to have models confirmed under the Electric Car Grant. However, the Department for Transport (DfT) has announced that more announcements are on the horizon, with numerous other brands having introduced their own grant 'guarantees' in anticipation of receiving approval from authorities.
Under the ECG, buyers of the Citroën models can receive a £1,500 discount at the point of sale. Unfortunately, none of the Citroën models announced today qualify for the maximum grant amount of £3,750. The new e-C3 model, with a starting price around £21,000, could fall below £20,000 once the £1,500 grant is applied, making it one of the most affordable new electric vehicles in the UK.
To qualify for the ECG, vehicles must meet specific sustainability and production criteria alongside price, warranty, and battery range requirements. The grant provides two levels based mainly on environmental standards: Level 1 offers a maximum grant of £3,750 for vehicles that meet the highest sustainability criteria, while Level 2 provides a £1,500 grant for vehicles that meet more basic environmental criteria but are still considered sustainable.
The key sustainability and production criteria include a Supply Chain Emissions Assessment, Electricity Source and Location, Battery and Vehicle Quality Requirements, and Certification and Approval. Manufacturers must apply to the Department for Transport (DfT), with the Vehicle Certification Agency (VCA) assessing eligibility.
In addition to Citroën, other brands such as Kia, Volkswagen, Skoda, Cupra, Hyundai, Alfa, Volvo, and Smart have also announced their own grant offerings. Chinese brands are expecting to be locked out of the new discount scheme on environmental grounds and have reduced prices to remain competitive.
The Transport Secretary, Heidi Alexander, stated that the first four models approved under the Electric Car Grant will make electric cars more accessible for thousands of drivers. The discount is applied automatically and there's no need for buyers to submit applications or claim rebates.
The ECG aims to bring the cost of electric vehicles closer to petrol and diesel equivalents, addressing affordability as a barrier to adoption. Official lists of qualifying vehicles are subject to ongoing approval processes, with the DfT planning to publish the official lists by mid-August 2025.
[1] Source 1 [2] Source 2 [3] Source 3 [4] Source 4
[1] The automotive industry's competitive landscape has been reshaped with numerous brands introducing 'grant guarantees' in preparation for the UK Government's Electric Car Grant (ECG). [2] To boost the finance sector's role in enabling transportation's transition to a greener future, the ECG offers grants of £1,500 or £3,750 based on a vehicle's sustainability, production, and other criteria.
