Fiat announces its own discount, moving ahead of the Electric Car Grant introduction.
The UK government has launched a new Electric Car Grant (ECG) to stimulate the sales of electric vehicles (EVs). The grant offers up to £3,750 off qualifying electric vehicles priced under £37,000.
As of August 2025, eligible car brands confirmed for the ECG include Citroën, Nissan, Renault, and Vauxhall. Citroën models such as the E-C3, E-C3 Aircross, E-C4, E-C4 X, E-C5 Aircross, and E-Berlingo qualify for a £1,500 grant automatically. Thirteen more models from Nissan, Renault, and Vauxhall have also been added, also qualifying for £1,500 off.
The grant uses a two-tier structure based on environmental and sustainability criteria. Level 1 (Band One) includes cars with the greenest credentials, which qualify for the full £3,750 grant. No specific models have been confirmed for this full amount yet. Level 2 includes cars deemed less sustainable, which receive a £1,500 grant.
To qualify, car manufacturers must meet science-backed emissions targets, and individual model lines must start at below £37,000 in entry-level trim. The eligibility criteria also include meeting warranty, battery range, and sustainability standards set by the government. Cars are assessed and approved progressively by the Department for Transport.
Noteworthy Nissan models on the list include the Nissan Micra (a rebranded Renault 5), Nissan Ariya (expected to be price-adjusted to qualify), and the new Nissan Leaf, which may qualify for the full £3,750 grant due to its sustainable credentials and UK manufacturing.
Other manufacturers, such as Hyundai, Volvo, and Great Wall Motor (GWM), have already launched their own discounts, likely in anticipation that their cars will not be eligible for the ECG. GWM has launched a £3,750 grant for the Ora 03 hatchback, lowering its price to £21,245. Fiat has reintroduced its £1,500 'E-Grant' for the 500e, 600e, and equivalent Abarth models, reducing their prices to £23,535, £28,535, £28,485, and £35,485 respectively.
It is important to note that cars produced in Asian countries, such as China, South Korea, and Japan, are not likely to be eligible for the ECG. The ECG is backed by £650 million of government funding.
The new Electric Car Grant is part of the government's £650 million plan to support electric vehicle adoption and UK manufacturing. As more models are assessed and approved, the number of eligible vehicles is expected to increase, potentially triggering access to the higher £3,750 grant for the greenest vehicles.
- The UK government's Electric Car Grant (ECG) is applicable to various industries, including automotive, as brands like Citroën, Nissan, Renault, and Vauxhall have qualifying models.
- In the sector of technology and finance, some companies have preemptively offered discounts on electric vehicles (EVs), anticipating that their models might not be eligible for the UK government's Electric Car Grant (ECG).
