Auto Finance Sponsored by Auto Finance News Six new EV models added to UK grant scheme Published: 1st September 2025 Share The Department for Transport has announced that six new electric vehicle (EV) models are now eligible for the government’s Electric Car Grant (ECG), giving buyers discounts of up to £3,750. The Ford Puma Gen-E and Ford E-Tourneo Courier now qualify for the maximum saving, while four other models – the Peugeot E-308, Peugeot E-408, DS 3, and DS Nº4 – receive a discount of £1,500. In total, 28 EV models are now part of the ECG scheme, which forms part of a £650 million government investment aimed at making EVs more affordable and encouraging adoption. Transport Secretary Heidi Alexander said the policy is designed to ease the transition to cleaner vehicles: “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. Our measures are driving competition in the UK EV market, boosting economic growth and supporting jobs and skills as part of our Plan for Change.” Recent data from Auto Trader shows that the grant has had a significant impact on demand, with eligible models experiencing up to an 80% rise in consumer interest. Ian Plummer, Commercial Director at Auto Trader, said the scheme is helping to address one of the biggest barriers to EV adoption: “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. Interest in cars priced below £37,000 has almost doubled.” The government says the discounts aim to reduce the upfront cost gap between EVs and equivalent petrol or diesel vehicles. Alongside the grant, the government is also investing in charging infrastructure. More than 83,000 public charging devices are currently available in the UK, with over 100,000 additional chargers planned under the £381 million Local EV Infrastructure Fund. In July, ministers announced a further £63 million charging package, which includes funding to make at-home charging more accessible – particularly for households without driveways – allowing some EV owners to run their cars for as little as 2p per mile. AA President Edmund King welcomed the expanded grant, saying: “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. As more cars qualify for the biggest savings, more drivers will be tempted to go electric.” The government says additional models are expected to be added to the scheme in the coming weeks, as manufacturers’ applications are reviewed to ensure vehicles meet the programme’s environmental standards. However, industry experts have warned that the limited availability of qualifying models could slow the adoption of electric vehicles, undermining the government’s efforts to encourage drivers to switch from petrol and diesel cars. Tough eco targets mean more than half of car makers in the UK do not qualify for any discounts, leaving many potential EV buyers frustrated and facing higher upfront costs than expected. With only two models currently accessible under the full £3,750 grant and uncertainty surrounding the launch dates of others, the scheme’s effectiveness is being called into question. Lisa Laverick Editor - Finance Connect Sign up to our newsletter Featured Stories NewsChinese car brands surge in the UK in 2025 NewsLeasys signs €600m financing agreement with EIB NewsPopularity of Chinese new entrants tipped to be top used-car trend of 2026 Auto Finance