The UK government has officially launched its new £650 million Electric Car Grant, aimed at making EV ownership more affordable for everyday drivers. Citroën is the first manufacturer to have four models approved under the scheme — the ë-C3, ë-C4, ë-C5 Aircross, and ë-Berlingo — each now eligible for a £1,500 discount at the point of sale.
The grant applies to electric cars priced under £37,000 and is part of a broader push to accelerate the UK’s transition to zero-emission vehicles. With more models expected to follow, this marks a major milestone in the country’s electric car rollout.
Citroen Leads The Charge
The UK government’s new electric car grant has officially kicked off — and Citroën is first out of the gate. Four models from the French manufacturer have been confirmed as the first to qualify for the £650 million Electric Car Grant (ECG), offering buyers £1,500 off at the point of sale. According to Mirage News, the eligible vehicles are the Citroën ë-C3, ë-C4, ë-C5 Aircross, and the ë-Berlingo van.
Transport Secretary Heidi Alexander announced the news on 5 August, stating: “We’re making owning an electric car cheaper, easier, and a reality for thousands more people across the UK.” The grant is part of the government’s wider Plan for Change, aimed at accelerating EV adoption while supporting jobs and cutting emissions.
How The New Electric Car Grant Works
The ECG replaces the Plug-In Car Grant scrapped in 2022, and it’s designed to be smarter and more targeted. Only electric cars priced under £37,000 are eligible, and the discount is tiered based on how sustainably the vehicle is manufactured:
- Level 1: £3,750 off for the most sustainable models
- Level 2: £1,500 off for models meeting moderate sustainability standards
Citroën’s four approved models fall into Level 2, meaning they meet the second-highest environmental criteria. The Department for Transport confirmed that Citroën submitted the required evidence, including verified science-based targets, but stopped short of explaining why the brand didn’t qualify for the full £3,75, says This Is Money.
The Models And Their New Prices
With the grant applied, Citroën’s electric car lineup becomes significantly more accessible, says This Is Money:
- ë-C3: Now from £20,595
- ë-C3 Aircross: Starts at £21,595
- ë-C5 Aircross: Available from £32,565
- ë-Berlingo (M version): Priced from £29,740
Greg Taylor, Managing Director of Citroën UK, said: “We want everyone to have the opportunity to make the switch to an electric car. This support will help make our cars more accessible for our customers.”
Why This Matters
Upfront cost remains one of the biggest barriers to EV adoption. According to the Department for Transport, many drivers still view electric cars as out of reach compared to petrol and diesel alternatives. The ECG aims to close that gap, and early signs suggest it’s already having an impact.
Auto Trader reported a surge in EV searches following the announcement, and RAC’s Head of Policy Simon Williams called the move “a real boost for electric.” He added: “It’s great to see the first qualifying models announced. Hopefully, it’s the sign of more to come from other manufacturers in the weeks ahead”.
Sustainability Criteria Stir Debate
While the grant has been welcomed, its sustainability criteria have raised eyebrows. To qualify, manufacturers must meet strict standards around carbon emissions during vehicle and battery production. According to This Is Money, these are assessed against the electricity grid intensity in the country of assembly — meaning cars built in regions with dirtier grids may miss out entirely.
Transport Minister Lilian Greenwood told BBC Radio 4 that “we don’t expect any cars assembled in China to be eligible for this scheme,” sparking concerns about potential trade implications and market exclusions.
What’s Next?
The government has confirmed that more models will be added to the approved list in the coming weeks. Manufacturers are currently submitting applications, and the ECG will run until 2029, giving carmakers time to align their production with the new standards.
With over 82,000 public chargepoints now available across the UK and infrastructure growing rapidly, the timing couldn’t be better. The ECG is expected to help meet the Zero Emission Vehicle (ZEV) mandate, which requires 28% of new cars sold in 2025 to be fully electric.
The first wave of approved models under the new electric car grant signals a fresh push toward affordability and sustainability. Citroën’s early success sets the tone, but the real test will be whether other manufacturers can meet the criteria — and whether consumers respond with confidence.
For now, the message is clear: the electric future is here, and it’s finally getting cheaper.
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