UK Government EV Grant: Eligible Cars, Discounts, and Manufacturer Rules

18th August 2025

From 16 July 2025 the UK government introduced a new incentive for electric vehicle buyers. The scheme offers either £1,500 or £3,750 off the cost of new electric cars priced under £37,000, making the switch to electric more affordable. This grant is part of a wider £650 million plan designed to encourage EV adoption and reduce emissions across the UK, and it is set to run until 2029.

Since the announcement there was some uncertainty around which vehicles would qualify. That list is now clearer, with 24 models currently confirmed as eligible. More are expected to be announced in the coming weeks, with nearly 50 new electric car models anticipated to meet the government’s sustainability criteria.

Current EV Grant Cars: What They Cost

How Do Manufacturers Qualify for the EV Grant?

There are two bands for the EV grant. Band 1 offers a larger discount of £3,750, while Band 2 provides a smaller discount of £1,500. At present no vehicles qualify for the full £3,750 grant, but there is already a wide range available with the £1,500 discount.

To have their vehicles included in the government’s Electric Car Grant scheme, manufacturers must meet strict sustainability and environmental standards. These rules are designed to make sure the scheme supports not just cleaner vehicles, but also cleaner manufacturing. To qualify, manufacturers need to:

Show a clear pathway to carbon neutrality across their UK operations by 2030
Commit to verified Science-Based Targets (SBT) for reducing emissions
Provide transparent reporting on supply chains, including how batteries are sourced and produced
Run recognised environmental management systems such as ISO 14001
Support circular economy principles, including recycling batteries and taking responsibility for the full lifecycle of their vehicles

Manufacturers will be reviewed each year to ensure they remain compliant. Those who fail to meet the requirements risk suspension or removal from the scheme.

Science-Based Targets (SBT)

A key part of the criteria is alignment with Science-Based Targets (SBT), an internationally recognised framework for climate action. Manufacturers must show progress in three main areas:

Scope 1 & 2 emissions: Cutting direct and indirect emissions from their operations by at least 42% by 2030 (using 2020 as the baseline), in line with the global 1.5°C target
Scope 3 emissions: Demonstrating real reductions in supply chain emissions, including battery production and raw material sourcing, verified by the Science Based Targets initiative
Net-zero commitment: Setting long-term goals to reach net-zero emissions across the value chain by 2050, with regular milestones along the way

All targets must be independently validated by the Science Based Targets initiative to make sure they align with climate science and the Paris Agreement.

Band Classifications

Band One (£3,750 grant): Requires full SBT validation, proven progress on emission reductions, and additional standards such as using at least 80% renewable energy in production and verified carbon-neutral manufacturing.
Band Two (£1,500 grant): Requires a formal SBT commitment with approved interim targets and evidence of progress towards full validation.

Which Models Stand Out?

With such a growing selection, there is something to suit every type of driver, from family cars to compact city models. One of the most desirable choices for the £1,500 discount is the Renault 5, reintroduced this year as a fully electric car. Popular, stylish and practical, it offers excellent value for money. While it may be on the smaller side, for drivers who do not need large amounts of space, the Renault 5 is set to become one of the most attractive options on the market.

The government’s EV grant is still in its early stages, and the list of eligible vehicles is expected to grow in the coming months. For now, buyers can already choose from a solid range of affordable models, with more options on the way as manufacturers work to meet the sustainability criteria.