Citroën Leads the Pack as First EVs Approved for £1,500 UK Grant

The UK Government has officially launched the first phase of its Electric Car Grant (ECG), offering drivers a £1,500 discount on select electric vehicles. Four Citroën models have made the initial cut. These include the ë-C3, e-C4, ë-C5 and the ë-Berlingo. Buyers will not need to lift a finger to claim the savings. The discount will be applied automatically at checkout. More eligible models from other manufacturers are expected to be confirmed in the coming weeks.

The grant, which quietly launched in mid-July, provides discounts of up to £3,750 for new zero-emission vehicles priced at or below £37,000. Not all vehicles will qualify for the full amount, however. The actual discount depends on how each model performs against a set of rigorous environmental criteria. Cars that fall into the highest sustainability band are eligible for the full £3,750. Those in the second band will receive £1,500.

Funding for the grant is routed directly to manufacturers. There is no paperwork for consumers, no forms to fill out, and no waiting period. Everything is handled behind the scenes and on a first-come, first-served basis.

The ECG scheme will be in place until at least the financial year ending in 2029, although that timeline could be extended depending on future budgets and uptake.

Transport Secretary Heidi Alexander said: “With the first four models approved today and more to come over the next few weeks, this summer we’re making owning an electric car cheaper, easier and a reality for thousands more people across the UK.

“Once again, we’re delivering our Plan for Change by standing firmly on the side of motorists and manufacturers, driving down costs for consumers, supporting jobs and putting money back in people’s pockets.”

This move comes at a critical time for the UK’s electric vehicle market. While EV registrations rose by nearly 26 per cent in May compared to the same period last year, most of that growth came from fleet purchases rather than individual buyers. Consumers remain hesitant, often citing high upfront costs and gaps in charging infrastructure as reasons to hold back.

Automakers have noticed the stall. Last year, Nissan issued a warning to the Government, stating that the adoption of EVs is falling short of expectations. The company cited soft consumer demand and increasingly complex regulations as contributing factors to the problem. Volvo followed suit by adjusting its targets. The company no longer expects to achieve full electrification by 2030. Instead, it will now allow up to 10 per cent of its sales to come from plug-in hybrids, citing delays in infrastructure rollout and scaled-back policy support as major hurdles.

In response, the UK Government has taken a multi-pronged approach. It has announced £4.5 billion in funding to accelerate the transition to electric. This includes investments in domestic manufacturing, EV charging infrastructure, and consumer-facing incentives such as the ECG.

The Government has also revised its Zero Emission Vehicle mandate. This policy requires automakers to increase the proportion of zero-emission vehicles in their overall sales every year. While the 2030 ban on new petrol and diesel cars remains in place, the updated policy gives manufacturers some breathing room. Hybrid models and earned compliance credits will now count toward their targets, providing more flexibility during the transition period.

To further support the sector, the Government has committed an additional £2 billion in capital and research and development funding through 2030. Another £500 million will be made available to extend that support through 2035.

On the international front, efforts are underway to make UK-made electric vehicles more competitive abroad. A recent trade agreement with the United States has significantly reduced export tariffs. British carmakers will now pay just 10 per cent, down from the previous 27.5 per cent. That reduction is expected to save the industry hundreds of millions of pounds annually and improve the global appeal of UK EVs.

Together, these initiatives paint a clear picture. The Government is betting big on electric vehicles. Whether consumers follow remains to be seen.