First EV models to receive Labour's full £3,750 Electric Car Grant confirmed

First EV models to receive Labour's full £3,750 Electric Car Grant confirmed
By: dailymail Posted On: August 28, 2025 View: 27

The first two EV models deemed green enough to qualify for Labour's full Electric Car Grant have finally been announced - a month and a half after the scheme launched.

The Department for Transport has today confirmed another six cars eligible for the taxpayer-funded scheme, with a pair of Ford models the first to meet the Government's strict criteria to be awarded the largest 'Band 1' £3,750 saving.

This emissions yardstick is based on the carbon impact of the production of the EV's battery, the assembly of the vehicle and the 'carbon intensity' of the electric grids in the countries where the car is made. 

Of the 28 sub-£37,000 cars confirmed to date, the remaining 26 vehicles eligible for the grant fail to meet stringent carbon-based emissions targets to receive the full discount, with these cars subject to a lower tier 'Band 2' subsidy of £1,500.

According to the DfT, demand for cars qualifying for the grant has surged by as much as 80 per cent in recent weeks.

However, this is in contrast to reports from within the industry, with dealers claiming that buyers are delaying purchases while they wait to understand which models will qualify for the £650millon-backed scheme - and the size of the discount offered. 

The Department for Transport has today confirmed the next six EVs that qualify for the Electric Car Grant. Four are eligible for discounts of £1,500, while two Fords have been announced as the first models making the grade for the full £3,750 subsidy

From today (28 August), the Ford Puma Gen-E and Ford E-Tourneo Courier are both subject to the full £3,750 ECG discount.

This should see the start price for the Puma Gen-E - the battery-powered variant of Britain's best-selling car for the last two years - drop from £29,995 to £26,245. 

The van-based E-Tourneo Courier, which currently ring in from £32,190, will from today cost £28,440.

Both models are produced at the Craiova factory in Romania. 

The batteries - which use chemistry supplied from South Korea - are assembled there too, while the electric drive units are manufactured at company's Halewood plant in Merseyside.

It's this European-based production that's likely seen both models awarded the full grant discount amount.  

Lisa Brankin, Ford UK Chair and managing director - who has been one of the biggest critics of the Government's recent efforts to push EV sales using the contentious Zero Emission Vehicle Mandate - said she 'welcomes' the government’s decision to accelerate the transition to electric mobility using the ECG.

She added that she was 'proud that Ford’s commitment to sustainability has been recognised with the full EV grant'.

Brankin went on: 'Ford Puma is the best-selling car in the UK and the government grant will help make the all-electric Puma Gen-E even more affordable.'

The Puma Gen-E - the battery-powered variant of Britain's best-selling car for the last two years - is one of the first two models to receive a 'Band 1' £3,750 ECG discount. This should drop the start price from £29,995 to £26,245
The van-based E-Tourneo Courier is the other Band 1 ECG qualifier. It currently ring in from £32,190, though from today should cost from £28,440

The announcement also sees the Peugeot e-308 hatchback and larger e-408 receive the lower £1,500 subsidy, as do two models from DS Automobiles - the DS3 and Nº4.

Confirming the new today, Transport Secretary Heidi Alexander said: 'We’re putting money back in people’s pockets and making it easier and cheaper for families to make the switch to electric, by delivering discounts of up to £3,750 on EVs.

'Our measures are driving competition in the UK EV market, boosting economic growth, and supporting jobs and skills as part of our Plan for Change.'

The Labour Government confirmed the relaunch of a taxpayer-funded electric car purchase grant on 15 July in a bid to stimulate demand among private buyers following an extended spell of slowing sales.

Ongoing concerns, largely around a lack of charging infrastructure, range anxiety, catastrophic depreciation and premium new model prices have stunted the sales curve of EVs over the last 24 months.

The hope is that by lowering prices using grants until 2028-29, ministers will be able to eradicate at least one of these hurdles in the run-up to the ban on sales of new petrol and diesel cars from 2030.

Transport Secretary Heidi Alexander said the scheme is 'putting money back in people’s pockets' and 'making it easier and cheaper for families to make the switch to electric'
Lisa Brankin, Ford UK Chair and managing director, has in recent months criticised Labour's proposals to increase EV sales, namely the use of the Zero Emission Vehicle mandate. However, she has welcomed the news that two Fords are eligible for the full ECG discount

More models are expected to be approved in the coming weeks as manufacturers’ applications for the grant are assessed against the scheme’s 'sustainability standards', which the Transport Secretary says will 'ensure that only the cleanest cars are eligible'.

Ms Alexander also cited recent AutoTrader data that suggested the ECG is driving growth across the sector, with search for models already confirmed for the scheme jumping by 80 per cent in recent weeks. 

But the slow nature in which the new models are being approved is causing friction in showrooms, according to industry insiders.  

Every model available for ECG

BAND 1 - £3,750

Ford Puma Gen-E

Ford E-Tourneo Courier 

BAND 2 - £1,500

Alpine A290 

Citroen e-C3 and Citroen e-C3 Aircross 

Citroen e-C4 and Citroen e-C4 X

Citroen e-C5 Aircross

Citroen e-Berlingo

Cupra Born 

DS DS3

DS Nº4 

Nissan Ariya

Nissan Micra

Peugeot e-208

Peugeot e-2008

Peugeot e-308

Peugeot e-408 

Peugeot e-Rifter 

Renault 4

Renault 5

Renault Megane

Renault Scenic

Vauxhall Astra Electric

Vauxhall Combo Life Electric

Vauxhall Corsa Electric

Vauxhall Frontera Electric

Vauxhall Grandland Electric

Vauxhall Mokka Electric

Volkswagen ID.3 

Grants have seen EV buyers delay purchases

Dealers have reported to trade magazine Car Dealer that the scheme is causing 'chaos' at forecourts, with drivers withholding purchases while they wait to see which cars receive the grant - and, more importantly, which models are eligible for the higher Band 1 discount of £3,750.

SMMT chief executive Mike Hawes said earlier this month said a 'dip' in registrations in July has been exacerbated by consumer's postponing ordering new EVs over 'certainty' about which models will have their prices reduced. 

'Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch,' he said.

'That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.'

Jon Lawes, managing director at Novuna Vehicle Solutions, said the ECG's 'rushed rollout and limited industry consultation' has caused major confusion for consumers and car makers alike.

'Manufacturers are scrambling to work out which models apply while consumers are left in limbo, wondering if they’ll actually get up to £3,750 in savings – risking a slowdown in demand, particularly in private sales, which continue to lag behind fleets.

'And excluding used EVs is a missed opportunity to improve affordability and buyer confidence.'

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Peter Smyth, director of retailer group Swansway, told the title that the ECG's roll-out has been 'shambolic', adding that it should have been far simpler than what he dubbed a 'typical government bureaucratic mess'.

Other retailers said the grant had been 'ill thought out' and created a logjam of customers.

Some motorists, failing to understand the convoluted application process manufacturers need to go through, have reportedly walked into showrooms demanding the £3,750 discount in full irrelevant of whether the DfT has confirmed if they qualify or not.

Another boss of a 'large dealer group' criticised the approach of announcing small batches of new eligible models on an almost weekly basis, saying the DfT should instead provide a full comprehensive list.

The drip-feed of qualifying cars is due to the scheme requiring manufacturers to apply for discounts via an online portal.

Car makers can only make applications for EVs that are priced up to a capped £37,000.  

Once the DfT deems if the vehicles qualify at all, it then has to determine the band based on the car's sustainability criteria.

It took the department three weeks to announce the first batch of qualifying cars on 4 August due to the procedure.

The Government agency says it is processing applications 'as quickly as possible' and on a 'first-come, first-served' basis.

The announcement also sees the Peugeot e-308 hatchback receive the lower £1,500 subsidy
The larger Peugeot e-408 has also been confirmed for the grant scheme. It also met the Band 2 criteria, meaning savings of £1,500
The DS3 has also passed the Government's strict emissions-based requirements to qualify for a £1,500 ECG discount
The all-new DS Nº4 also qualifies for the £1,500 discount. Order books for the car only opened this month - and first deliveries won't arrive until after October

The inclusion of sustainability criteria is also ruling out a large number of manufacturers from the Band 1 £3,750 discount - especially those using batteries produced in China.

And ministers have said that Chinese-made models are unlikely to qualify for the grant at all, namely due to its heavy reliance on coal-fired power stations for its energy creation. 

The boss of BYD, the Chinese EV giant that has surpassed Tesla as the biggest global seller of battery cars, recently dubbed the scheme 'stupid'.

This has led to many car makers launching their own schemes. On our last count, 16 brands have launched their own grants in response.

Commenting in response to criticism of how the grant has been handled, a DfT spokesperson told the Daily Mail: 'We expect dozens of models to be eligible for the Electric Car Grant with 22 models announced to date and many more to come, providing a substantial boost for the industry and saving drivers thousands of pounds.

'The list of eligible models is published online and regularly updated with discounts available for the public at dealerships.

'We have also published comprehensive guidance for manufacturers who we will continue to work with alongside dealers to help more of their customers access the grant.'

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