Thousands of drivers across the UK can now save £1,500 on new electric vehicles, as the government launches the first phase of its £650 million Electric Car Grant (ECG). The initiative, part of
a broader £4.5 billion investment to drive the switch to electric, is designed to cut costs for consumers, support industry growth, and expand the UK’s charging infrastructure.
Transport Secretary Heidi Alexander announced that from today, buyers will automatically receive a £1,500 discount on four Citroën electric models: the ë-C3, ë-C4, ë-C5 Aircross, and the ë-Berlingo. No application or paperwork is required—the discount is applied directly at the point of sale.
These Citroën models are the first to be approved under the ECG scheme, with more vehicles expected to be added in the coming weeks. The grant enables manufacturers to offer discounts on new EVs that meet stringent sustainability standards, boosting sales, supporting jobs, and encouraging investment during challenging global economic conditions. The ECG will run until the 2028-2029 financial year.
The announcement follows a significant expansion of the UK’s EV charging network, with over 17,300 public chargepoints added since July 2024—a 27% year-on-year increase. With more than 82,000 chargepoints now available and 100,000 targeted in the near future, the government is ensuring the infrastructure is in place to support the growing number of EV drivers.
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”.
Greg Taylor, Managing Director, Citroën UK
“We welcome the support of the Electric Car Grant and are delighted to be the first to have our electric range, including the New ë-C3, New ë-C4, New ë -C5 Aircross and ë-Berlingo, approved and eligible. At Citroën we want everyone to have the opportunity to make the switch to an electric car and this support will help make our cars more accessible for our customers”.
RAC Head of Policy, Simon Williams said:
“It’s great to see the first qualifying models announced for the government’s new Electric Car Grant. Not only does this mean more drivers will benefit from the lower cost of running an electric vehicle, but it’s hopefully the sign of more to come from other manufacturers in the weeks ahead. With nearly 1.6 million battery electric vehicles on the road already, it’s a real boost for the switch to electric”.
The ECG comes as the government addresses one of the primary barriers to EV adoption—upfront cost differences with petrol and diesel vehicles. In addition to the £1,500 discount, EV drivers can save up to £1,500 annually on fuel and running costs.
Recent efforts include a £63 million investment to expand charging infrastructure, particularly for homes without driveways, allowing drivers to charge at home rates as low as 2p per mile—equivalent to driving from London to Birmingham for £2.50.
Manufacturers can now apply for ECG discounts of up to £3,750, with new guidance published by the Department for Transport to streamline the application process. The grant complements other government actions such as the £1.6 billion investment to fix potholes and a fuel duty freeze until spring 2026.
This initiative supports the UK’s Zero Emission Vehicle (ZEV) Mandate, which requires automakers to sell increasing proportions of zero-emission vehicles each year. The government’s recent adjustments to the mandate, coupled with new trade agreements with the US, India, and the EU, aim to strengthen the UK’s automotive sector and secure jobs.
With Britain becoming Europe’s largest EV market in 2024, and EV sales rising 20% year-on-year, the government’s investment is aimed at keeping the UK at the forefront of the global electric vehicle transition. Photo by Jengtingchen, Wikimedia commons.