Electric Car Grant Save upto £3750

Finding the perfect electric vehicle is more affordable than ever, thanks to the government's £650 million Electric Car Grant scheme, that could save you up to £3,750 when purchasing a new electric car. With dozens of models confirmed across our brands, and BMW has just become the latest. At Lloyd Motor Group, we're here to help you understand how this fantastic opportunity can make your switch to electric more accessible. 

What is the Electric Car Grant?

The Electric Car Grant (ECG) is a government initiative designed to make electric vehicles more affordable in the UK, with a £650 million investment. Since launching in 2025, the list of eligible cars has hrown steadily as more manufacturers apply and are assessed against the scheme's criteria.

How Much Can You Save on Electric Cars?

The grant is split into two bands, depending on how a vehicle scores against the government's sustainability criteria. 

• Band 1 cars - the maximum discount of £3,750 awarded to the most sustainably produced vehicles.
• Band 2 cars - a discount of £1,500.
• Eligible vehicles are generally priced at or under £37,000, though some high-specification versions up to £42,000 can also qualify where a lower-priced version of the same battery and power setup meets the criteria.

• Preferential tax rates on top of the grant discount
• Additional annual savings in fuel and running costs compared to petrol and diesel vehicles

Which Electric Vehicles Are Eligible?

The grant focuses on supporting vehicles that meet the highest manufacturing sustainability standards. To be eligible, electric cars must be:

• Priced at or under £37,000 when new (or up to £42,000 for qualifying higher trims)
• Zero emission vehicles (fully electric)
• Manufactured to meet the sustainability standards as determined by the g government scheme
   

Browse by Brand

BMW Cars Available with the Government EV Car Grant

BMW has just become the first premium German manufacturer to qualify for the scheme. From 24 July 2026, selected BMW iX1 and BMW iX2 models are eligible for the full £3,750 Band 1 grant, thanks to BMW's sustainability credentials at its Regensburg production plant.

The eligible models are the single-motor eDrive20 variants:

• iX1 eDrive20 Sport
• iX1 eDrive20 xLine
• iX1 eDrive20 M Sport
  
  
   
• iX2 eDrive20 Sport
• iX2 eDrive20 M Sport
  
  

With the grant applied, prices can undercut key rivals such as the Audi Q4 e-tron and Mercedes-Benz EQA. All-wheel-drive xDrive30 variants and Shadow Edition models are not included in the grant.

iX1 Offers    iX2 Offers

MINI Cars Available with the Government EV Car Grant

The All-Electric Countryman is eligible for the Government grant (With a £1,500 saving available, on models up to £42,000).

Škoda Cars Available with the Government EV Car Grant

The Škoda Elroq is eligible for the Government grant on the following model derivatives: Elroq SE 50, Elroq SE L 60, Elroq SE L 85, Elroq Edition 60, Elroq Edition 85, Elroq SportLine 60, Elroq SportLine 85. With a £1,500 saving available.



The Škoda Enyaq  is eligible for the Government grant on the following model derivatives: Enyaq SE L 60, Enyaq Edition 60. With a £1,500 saving available. Discount excludes Enyaq Model Year 2025.

Volkswagen Cars Available with the Government EV Car Grant

The Volkswagen ID.3   is eligible for the Government grant, when purchasing the ID.3 Pure, ID.3 Pro and ID.3 Pro S where the purchase price of the vehicle paid by the customer is below £42,000. 



The Volkswagen ID.4 when purchasing selected Volkswagen ID.4 trims. Customers purchasing a qualifying vehicle will receive £1,500 off the purchase price through the Government grant where the final purchase price of the vehicle paid by the customer is below £42,000. 
 

Kia Cars Available with an EV Car Grant

The Kia Electric Car Allowance, offers a £3,750 finance deposit contribution only on the Kia EV2, Kia EV3, Kia EV4 and Kia PV5 Passenger.

The Kia EV2 Air is available with a £3,750 Electric Car Grant 

Kia EV2 Offers



The Kia EV3 GT-Line is available with the £1,500 Government Grant

Kia EV3 Offers 


Kia EV4 'Air' is available with the £3,750 Electric Car Grant 

Kia EV4 Offers

The PV5 Passenger 'Essential' is available with the £1,500 electric car grant

Kia PV5 Passenger

How Lloyd Motor Group Can Help You

We understand that choosing the right electric vehicle is about more than just the price. We will take the time to understand your specific needs, and find a vehicle right for you. Our sales teams can help with the following:

• Navigate the Electric Car Grant eligibility criteria
• Compare different electric vehicle models across our range of brands
• Understand the total cost of ownership, including savings on fuel and maintenance
• Arrange test drives so you can experience electric driving firsthand
• Provide expert advice on home charging solutions
• We can guide you through the eligible models and help you understand which vehicles qualify for the maximum discount.
  
  Learn About Electric Vehicles     Browse EV Benefits
   

Getting Started with Your Electric Journey

The Electric Car Grant represents a fantastic opportunity to join the growing number of people who have already discovered the benefits of electric driving. There's never been a better time to make the switch.

Ready to explore your options? Click below to browse our full range of new and used electric cars in-stock from leading manufacturers. 

BROWSE ALL ELECTRIC STOCK

The Growth of Electric Infrastructure

This government initiative is part of a broader £4.5 billion investment in electric vehicle infrastructure and incentives. This means access to better technology, improved charging infrastructure, and ongoing support for sustainable transport choices.

For more detailed information about the Electric Car Grant, including specific eligibility criteria and application processes, you can read the full government announcement.

Contact us today to learn more about how the Electric Car Grant can help you save on your next electric vehicle. 

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