What’s Changing with Electric Car Discounts in the UK?
If you’ve been eyeing a new electric car but hesitated because of price, there’s some news that might just tip the scales. The UK government recently announced the Electric Car Grant (ECG), a fresh incentive designed to make EVs more affordable—and manufacturers aren’t waiting around to get in on the action. Let’s break down what’s happening, what it means for buyers, and how you can take advantage of these new deals.
Why Did the UK Launch a New Electric Car Grant?
After the government pulled the Plug-in Car Grant (PiCG) in 2022, EV sales in the UK hit a bit of a plateau. The ECG, backed by £650 million, is the government’s answer to that slowdown. The goal? Get more people behind the wheel of electric cars by making them more accessible. Depending on the model, buyers can now get either £1500 or £3750 off qualifying EVs. The catch: the car must start below £37,000 and meet certain environmental standards, including how much CO2 is produced during manufacturing.
How Do Manufacturers Qualify—and Why Are Some Brands Left Out?
Here’s where things get interesting. To qualify for the ECG, manufacturers need to hit science-backed emissions targets—not just for the cars themselves, but for the entire production process, including battery manufacturing. This is a step up from previous grants, which focused mainly on the car’s emissions during use.
Because of these new criteria, it’s expected that many cars made in China, South Korea, and Japan won’t qualify for the ECG. That includes popular brands like Hyundai, MG, and GWM. Rather than wait for the official decision, these companies have rolled out their own discounts, sometimes matching or even beating the government grant.
Which Electric Cars Are Getting the Biggest Discounts Right Now?
Let’s get to the good stuff: the deals. Here’s a rundown of what some major brands are offering as they await the ECG’s rollout:
Alfa Romeo: The Italian brand’s first EV, the Junior Elettrica, now comes with £1500 off, bringing the price down to £32,405. Not bad for a stylish compact crossover.
GWM (Great Wall Motor): The Ora 03 hatchback, formerly known as the Funky Cat, is now £3750 cheaper, dropping its price to just £21,245. That’s a significant cut for a well-equipped EV.
Hyundai: Hyundai is offering a £3750 discount on its new Inster hatchback, making it available for £19,755. Other models like the Ioniq 5, Ioniq 6, and Kona Electric are also £1500 cheaper.
MG: The MG 4 EV hatchback and the new S5 EV crossover both get £1500 off, with prices now starting at £25,495 and £26,995, respectively.
Leapmotor: This Stellantis-backed brand is offering £1500 off the T03 city car (now £14,495) and a hefty £3750 off the C10 SUV (now £32,750).
Skywell: The BE11 SUV from Skywell gets a double whammy—a £3750 discount plus a £6000 dealer contribution. That brings the price down from £36,995 to just £27,245.
Volvo: Volvo has trimmed £1500 from the price of its EX30, EX40, and EC40 EVs. The EX30 now starts at £31,560, while the EX40 and EC40 are priced at £44,760 and £50,410, respectively. No discounts for the EX90 or ES90, though.
What’s the Catch with These Discounts?
While these discounts are tempting, there are a few things to keep in mind. First, not every model qualifies for the full grant—how much you get depends on the car’s environmental impact during production. The government hasn’t published the exact thresholds yet, so there’s a bit of uncertainty.
Second, some of the biggest discounts are coming directly from manufacturers, especially those who expect their cars to be excluded from the ECG. That means these deals might not stick around forever—they’re designed to keep sales moving while the official grant details are ironed out.
How Do These Discounts Compare to Previous Grants?
The old Plug-in Car Grant was simpler: if the car was electric and under a certain price, you got a fixed discount. The new ECG is more nuanced, rewarding manufacturers who are making real efforts to reduce emissions across the board. According to the Society of Motor Manufacturers and Traders (SMMT), this approach could push the industry toward greener practices, not just greener products.
For buyers, the bottom line is that discounts are still available—sometimes even bigger than before—but you’ll need to pay attention to which models and brands are eligible.
What Does This Mean for the Future of EVs in the UK?
The ECG and the flurry of manufacturer discounts signal a new phase for the UK’s electric car market. With more affordable options and a push for cleaner manufacturing, the hope is that EV adoption will pick up speed again. Data from the Department for Transport shows that EV registrations grew by just 18 percent in 2023, down from 40 percent the year before. These new incentives are designed to reverse that trend.
If you’re considering an EV, now’s a smart time to shop around. With both government and manufacturer discounts in play, you could save thousands—and help drive the shift to cleaner transport.
The Takeaway: Should You Buy Now or Wait?
If you’ve been on the fence about going electric, the current wave of discounts is hard to ignore. Whether you grab a deal from a manufacturer or wait for the ECG to kick in, there’s real money to be saved. Just keep an eye on eligibility criteria and act fast—these offers may not last forever. The EV market is evolving quickly, and for buyers willing to do a bit of homework, the rewards are better than ever.