Citroen has become the first manufacturer to have electric cars (EVs) approved under the UK’s new £650 million electric car grant (ECG), with buyers now eligible for up to £1,500 off the list price. The approved models include the Citroen e-C3, e-C3 Aircross, e-C5 Aircross and the e-Berlingo MPV.
Prices after the grant now start from £20,595 for the e-C3, making it one of the cheapest electric cars currently on sale in the UK. These four models qualify for the lower of two possible discounts, automatically applied at the point of sale. Unlike all of the previously-announced discounts on EVs, this one’s via the government scheme, and not financed by the carmaker.
The grant, launched in July 2025, is aimed at making EVs more accessible and rewarding manufacturers with cleaner, more sustainable production methods. More models are expected to be approved in the coming weeks.
Greg Taylor, Managing Director at Citroen UK, welcomed the move: ‘At Citroen we want everyone to have the opportunity to make the switch to an electric car and this support will help make our cars more accessible for our customers.’
How the grant works
To be eligible, electric cars must have a recommended retail price (RRP) of £37,000 or less and be manufactured by carmakers that have signed up to science-based sustainability targets. There are two tiers: band one models can receive up to £3,750, while band two cars – like the Citroens – qualify for up to £1,500.
Eligibility also depends on the carmaker’s supply chain emissions. The DfT has confirmed that manufacturers without verified science-based targets will be excluded from the grant.
That means many battery electric vehicles built in China and South Korea are likely to miss out, based on current sustainability standards. The Society of Motor Manufacturers and Traders (SMMT) estimates that around one third of EVs on sale will qualify under the new scheme.
More brands offering discounts
While the Government’s list of approved models is still small, some manufacturers aren’t waiting. Hyundai, MG, Leapmotor, Skywell UK and Volvo have all launched their own money-off deals for electric models. Most recently, Volkswagen Group brands – including VW, Skoda and Cupra – confirmed they would honour the ECG equivalent on selected EVs.
Transport Secretary Heidi Alexander said: ‘With the first four models approved today and more to come over the next few weeks, this summer we’re making owning an electric car cheaper, easier and a reality for thousands more people across the UK.’
What this means for you
This is the first solid confirmation of which electric cars will actually benefit from the new Government grant. That means real savings are finally filtering through to customers, with EVs like the Citroen e-C3 becoming a more viable choice for budget-conscious buyers.
It’s also a sign that eco credentials are now a deal-breaker for manufacturers. The grant puts pressure on carmakers to clean up their supply chains if they want their cars to qualify.
For consumers, the good news is that some brands are already stepping in with their own incentives, even before their models are officially approved. That creates more choice – and better value – for anyone in the market for an EV.
Editor’s view: Citroen first out of the blocks, many more to follow
This is what I’ve been waiting for: a clear sign that the Government’s ECG grant is more than just hot air. While it’s great to see Citroen out of the blocks first, it’s even better that prices are dropping to where they should have been all along. Sub-£21k for a very comfortable and practical brand new electric car built in Europe? That’s finally starting to sound like value.
But the job isn’t done yet. This is still just the tip of the iceberg. I’d love to see the rest of the list, especially from the likes of Vauxhall, Renault and Fiat – brands people actually buy. And we need to make sure manufacturers don’t just pocket the savings through stealthy price hikes.
As ever, we’ll keep calling it out when we spot games being played. But for now, this is a rare win for EV buyers. It rewards greener production, lowers prices and makes EVs more accessible. Of course, some will complain that taxpayer’s money is being used for this, but the wheels of progress sometimes need help to keep on turning…
Keith Adams – Editor, Parkers
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