Motorists buying any of these 50 cars could be eligible for a staggering £3,750 discount due to a new Labour rule change. Electric cars from popular brands such as Vauxhall, Renault, and MINI are all set for price cuts due to Labour’s new EV grant.
The £650million scheme offers price cuts to those buying brand new electric vehicles priced under £37,000 in a bid to stimulate private demand. Labour has confirmed that only vehicles from brands committed to a Science-Based Target (SBT) for cutting emissions will qualify for the scheme. Experts at Carwow have put together a list of vehicles priced under £37,000 that match this criteria and could be set for savings.
However, Chinese brands such as BYD, Dacia and Leapmotor may not qualify for the scheme due to environmental standards of production facilities. Despite this, some Chinese brands such as Laapmoor have taken their own action and pledged to cut prices by the same £3,750 figure in-line with the new rule.
The Government said their new EV grant would help to narrow the upfront cost difference between petrol cars and electric models. It comes after previous polls suggest upfront costs were still a key barrier to motorists making the transition.
Buying an electric vehicle is becoming cheaper, with around 40% of used electric cars now available for under £20,000. Meanwhile, analysis shows there are now 33 brand new electric cars available for under £30,000.
However, help has been offered after SMMT data revealed that just one in 10 private buyers decided to go ahead and buy electric cars in 2024. Speaking when the news was first announced, Iain Reid, head of Editorial at Carwow, welcomed the new savings.
Iain said: “The Government’s EV subsidy scheme is a welcome turning point – and one we’ve long been calling for. The decision to reintroduce support at the point of sale is exactly what’s needed to rebuild consumer confidence; a saving of up to £3,750 available until 2028/29 could be decisive for many households considering an electric car for the first time.
“Manufacturers have done their part by bringing EV prices closer to petrol equivalents, and a grant targeted at the more affordable end of the market will help boost momentum.”
Full list of 50 cars set for £3,750 price cut due to new rule
Motorists in the UK could soon benefit from a substantial £3,750 discount on selected new electric vehicles, thanks to a new government-backed Electric Car Grant. This initiative, valued at £650 million, aims to stimulate private EV uptake by providing automatic discounts on brand-new electric cars priced under £37,000.
Under the new rule, only models from carmakers that have committed to a Science-Based Target (SBT) for reducing emissions will be eligible for the full grant. This ensures that the scheme supports manufacturers actively pursuing green, sustainable operations in line with national climate goals. The grant is automatically applied at the dealership at the point of purchase—there's no application needed from the buyer.
Which cars are eligible?
To qualify, the car must be:
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A fully electric (BEV) vehicle
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Retailing for no more than £37,000
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From a manufacturer with a verified Science-Based Target for emissions reductions
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Must meet key standards, including a WLTP electric range of at least 100 miles and an 8-year or 100,000-mile battery warranty (with guaranteed battery replacement if capacity drops below 70% within this period)
While the official government list of eligible cars is due to be released on August 11, 2025, industry experts have already outlined the 50 vehicles most likely to receive the full £3,750 reduction. This list covers all mainstream and up-and-coming brands active in the UK electric car market, including popular names like Vauxhall, Renault, MINI, MG, BYD, Peugeot, and more.
Projected List of 50 Eligible Electric Cars (likely candidates)
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Vauxhall Corsa Electric
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Vauxhall Mokka Electric
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Vauxhall Astra Electric
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Peugeot e-208
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Peugeot e-2008
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Peugeot e-308
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Renault 5
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Renault Zoe
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MG4 EV (Standard and Long Range)
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MG5 EV
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MG ZS EV
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MINI Cooper Electric
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Fiat 500 Electric
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Citroën ë-C3
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Citroën ë-C4
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Citroën ë-Berlingo
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BYD Dolphin
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BYD Atto 3 (certain trims)
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GWM Ora 03 (Funky Cat)
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Nissan Leaf (40kWh and selected trims)
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Nissan Townstar EV
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Kia Niro EV (base trim)
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Kia Soul EV (base trim)
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Hyundai Kona Electric (base trim)
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Hyundai Ioniq 5 (selected entry trims)
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Smart #1 (Pro/Pro+)
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Smart EQ Fortwo and Forfour
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Volkswagen ID.3 (base trim)
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Volkswagen e-Up!
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Volkswagen ID.2 (expected 2025 launch)
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SEAT Mii Electric
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Skoda Citigo-e iV
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Skoda Enyaq (entry trims)
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Opel Corsa-e
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Opel Mokka-e
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DS 3 E-Tense (base trim)
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Jeep Avenger Electric
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Honda e:Ny1 (base)
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Mazda MX-30
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CUPRA Born (base)
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Suzuki eVX (pending confirmation)
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Dacia Spring (2025 UK relaunch)
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Tesla Model 2 (if launch and price criteria are met)
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Ford Puma EV (base)
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Ford E-Tourneo Courier (from late 2025)
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Volkswagen ID. Polo (expected late 2025)
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Renault Twingo E-Tech (if re-launched, base trim)
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Fiat Panda Electric (2025)
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Hyundai Inster
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Kia EV3 (entry-level)
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Additional segments/trims of the above models
Key grant details at a glance:
Grant Amount: £3,750
Eligible Car Value: Up to £37,000
Eligibility: New, fully electric vehicles from SBT-verified manufacturers; meets UK technical and warranty specs
The new grant will help make electric cars more affordable and accelerate the transition to green mobility across the UK. Always confirm with your dealer that the model and trim you’re considering is on the final official government list, which is due to be published in August.
For up-to-date confirmation after that date, consult the most recent documentation from your dealership.
