Business users and salary sacrifice drivers now have more electric cars to choose from under the Government’s £650 million Electric Car Grant. Following an initial launch in July, the Department for Transport (DfT) has confirmed that six more vehicles now qualify for support – bringing the total to 28. These include two cars that qualify for the higher Band 1 grant of £3,750, with the rest eligible for the £1,500 Band 2 rate, which offers a £1,500 discount at point of order.
The newly eligible models include the Ford Puma Gen‑E and Ford E‑Tourneo Courier (both in Band 1), Cupra Born, Volkswagen ID.3, Peugeot e-208, Peugeot e-2008, and Peugeot e-Rifter. These additions join a growing list of approved EVs that meet the grant’s price and sustainability requirements, which include a list price below £37,000 and verified environmental production standards (see full list below).
The grant splits vehicles into two bands:
- Band 1 – A grant of £3,750 for EVs with low embedded carbon and sustainable manufacturing
- Band 2 – A grant of £1,500 for models that meet the price threshold but have less sustainable production methods
This eligibility criterion means some popular Chinese-made EVs, which tend to have higher embedded carbon, remain off the list — a subtle shift toward greener supply chains.
The Electric Car Grant applies automatically at point of order and can be used across both fleet and salary sacrifice schemes. Drivers on typical three-year Business Contract Hire agreements could potentially save up to £70 per month, depending on funder calculations and residual value impacts, while Personal Contract Hire and Salary Sacrifice drivers should also see welcome savings.
CBVC’s Managing Director Mike Manners welcomed the move saying that it would boost take up of qualifying electric cars and generate greater momentum about electrification.
Industry bodies have echoed that optimism. Mike Hawes, Chief Executive of the SMMT, said:
“This grant will help drive the EV market from just one in four vehicles today, to four in five by the end of the decade.”
CBVC will continue monitoring which models are added to the grant list and advising customers on the best-value options available for fleet and salary sacrifice use.
Which models qualify for the Electric Car Grant?
Cars have to be in either Band 1 or Band 2 and have a list price below £37,000. However, rather confusingly, the Government has confirmed that more expensive versions of a qualifying model are also eligible for the grant with the price capped at £42,000.
Citroën
- ë‑C3
- e‑C4
- ë‑C5
- ë‑Berlingo
Nissan
- Micra
- Ariya
Renault
- Alpine A290
- Megane
- Renault 4
- Renault 5
- Scenic
Vauxhall
- Corsa Electric
- Combo Life Electric
- Astra Electric
- Mokka Electric
- Frontera Electric
- Grandland Electric
Additional Confirmed Models
- Cupra Born
- Volkswagen ID.3
- Peugeot e‑208
- Peugeot e‑2008
- Peugeot e‑Rifter
Latest Additions (as of 28 August 2025)
- Ford Puma Gen‑E – £3,750 discount
- Ford E‑Tourneo Courier – £3,750 discount
- Peugeot E‑308 – £1,500 discount
- Peugeot E‑408 – £1,500 discount
- DS 3 – £1,500 discount
- DS Nº4 – £1,500 discount
For more details of qualifying cars visit Low-emission vehicles eligible for a plug-in grant.
