The UK government has thrown open the doors to a new era in electric vehicle (EV) adoption, unveiling on August 28, 2025, the first models eligible for its much-anticipated Electric Car Grant scheme. This initiative, which aims to turbocharge the nation’s transition away from petrol and diesel vehicles, is already making waves across the automotive industry and among would-be EV buyers. At the heart of the announcement are two Ford models—the Puma Gen-E and the e-Tourneo Courier—each now eligible for a substantial £3,750 discount, the highest available under the scheme.
The Electric Car Grant, a £650 million government program, was announced the previous month to address one of the most persistent barriers to EV adoption: the upfront cost. According to the BBC and other outlets, the discount is automatically applied at the point of sale for new eligible vehicles priced at £37,000 or below. While the two Ford models headline the list with the top discount, a further 26 electric cars—including models from Citroën, Peugeot, Renault, Vauxhall, and Volkswagen—are now eligible for a £1,500 grant.
Ford’s Puma Gen-E, with a retail price of £28,495, and the e-Tourneo Courier, at £32,190, were selected for the maximum grant not just for their eco-friendly performance, but also for Ford’s commitment to sustainable manufacturing. The company has set an ambitious target to be carbon neutral across its European operations by 2035, relying on renewable energy and achieving zero waste to landfill in its UK and European factories, as reported by Sky News and other sources. This focus on sustainability in both product and process is a key factor in determining eligibility for the highest level of grant, government officials say.
Transport Secretary Heidi Alexander emphasized the broader goals of the scheme, stating, “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.” She added, “Our measures are driving competition in the UK EV market, boosting economic growth, and supporting jobs and skills.” The government’s efforts are part of a larger investment—over £4.5 billion—to position the UK as a global leader in electric mobility, with Britain already Europe’s largest EV market in 2024 and sales up nearly a third so far this year.
The new grants come as the government maintains its pledge to ban the sale of new fully petrol or diesel cars and vans by 2030, a policy designed to help meet the UK’s emissions targets. However, the transition has not been without challenges. As the BBC notes, many drivers point to the high upfront costs of EVs and a lack of sufficient public charging infrastructure as major hurdles. With around 1.3 million electric cars on Britain’s roads but only about 82,000 public charging points, concerns about convenience persist.
Industry leaders and consumer advocates have broadly welcomed the grant scheme. Edmund King, president of the AA, remarked, “Drivers frequently tell us that the upfront costs of new EVs are a stumbling block to making the switch to electric. It is great to see some of these more substantial £3,750 discounts coming online because for some drivers, this might just bridge the financial gap to make these cars affordable.” Ian Plummer, commercial director at Autotrader, echoed this sentiment, noting that the Electric Car Grant had prompted the highest uptick in consumer demand for EVs on the platform in three years, with interest in cars priced below £37,000 nearly doubling.
Data from Autotrader highlights the persistent price gap: as of June 2025, the average new battery electric car cost £49,790, compared to £34,225 for a petrol car. This disparity has been a sticking point for many consumers, despite the long-term savings on running costs that EVs can offer. According to Plummer, “Half of consumers say price is the biggest barrier to going electric, so it’s fantastic to see the first tranche of models qualify for the full £3,750 grant.”
The list of eligible vehicles for the £1,500 grant is extensive, featuring models such as the Citroën ë-C3 and ë-C3 Aircross, Peugeot E-208 and E-2008, Renault Megane, Vauxhall Corsa Electric, and Volkswagen ID.3. Carmakers can apply for their models to be considered, with the government assessing applications based on both the environmental performance of the vehicle and the sustainability of its manufacturing process. The Department for Transport has indicated that more vehicles are expected to be approved in the coming weeks.
Executives from several automakers have voiced their support for the scheme. Lisa Brankin, Ford UK Chair and Managing Director, said, “We welcome the government’s decision to accelerate the transition to electric mobility and are proud that Ford’s commitment to sustainability has been recognised with the full EV grant.” Nicola Dobson, Managing Director at Peugeot UK, commented, “This government support is welcome to help make the switch to electric more accessible and give consumers greater confidence to choose the electric Peugeot that best fits their lifestyle.” Jules Tilstone, Managing Director at DS Automobiles UK, added, “We welcome the support which makes premium electric mobility more accessible to a wide range of drivers.”
Yet, not all voices are entirely convinced. Hugh Bladon, founding member of the Alliance of British Drivers, told the BBC that electric vehicles “don’t cut the mustard,” citing the combination of high costs and limited charging infrastructure. He argued that hybrid cars remain a more cost-effective solution and called for similar incentives to be extended to those vehicles.
Meanwhile, industry groups such as the Society of Motor Manufacturers and Traders (SMMT) are urging the government to ramp up the processing of applications for new EV models to ensure a broader choice for consumers. Mike Hawes, SMMT chief executive, stressed the importance of “ramping up the processing and assessment of applications for new EV models… to ensure the greatest possible choice for consumers and certainty for the market.”
Dealers are also optimistic about the grant’s impact. Sue Robinson, Chief Executive of the National Franchised Dealers Association, said, “The inclusion of the Ford Puma Gen-E and e-Tourneo Courier at the maximum £3,750 discount is a significant step in helping more drivers make the switch.” She acknowledged, however, that the perception of poor value for money has slowed EV sales, an issue the new grants may help to address.
The grant scheme is set to run for three years, and the government expects the program to bring EV prices more in line with their petrol and diesel counterparts. With more models likely to be added to the eligibility list soon, the landscape for British motorists is rapidly changing. The hope is that, with continued investment, consumer incentives, and a push for greater sustainability, the UK will accelerate toward its 2030 goals and beyond.
For now, the arrival of substantial grants and a growing roster of eligible vehicles marks a pivotal moment in the UK’s electric vehicle journey—one that could finally tip the balance for drivers weighing the switch to cleaner, greener transport.
