🚨 Government EV Grant Update:
Not All Electric Cars Will Qualify — Here's Why
The UK government has announced a new grant to make electric vehicles more affordable for thousands of motorists—with discounts of either £1,500 or £3,750 depending on how environmentally friendly the car’s production process is. But here’s the catch: not every electric vehicle qualifies, and some well-known manufacturers may be left out entirely due to their lack of verified sustainability credentials.
At National Vehicle Solutions, we’re breaking it down for you—no sugar-coating, just the facts.
💡 What’s the Deal with the New EV Grant?
The latest grant, designed to accelerate the UK’s transition to zero-emission vehicles, offers:
- ÂŁ1,500 or ÂŁ3,750 off the price of a new electric car
- Only for cars under ÂŁ37,000 RRP
- Applied at the point of sale or lease
The amount you qualify for depends on how the car is built—specifically how green the manufacturing process is, from chassis to battery assembly.
So, it’s not just about what the car emits on the road—it’s about what the carmaker emits when building it.
⚠️ Why Some EV Manufacturers Might Not Qualify
Here’s where things get tricky: for a car to qualify for the full £3,750 discount, the manufacturer must prove it uses low-emission production methods. This is typically verified through third-party frameworks like the Science Based Targets initiative (SBTi).
That means some manufacturers selling EVs in the UK won’t be eligible for the higher-tier grant—and may not qualify for the grant at all.
As of now, the following brands do not have approved SBTi targets, and may not qualify under the new grant rules:
- BYD
- NIO
- XPeng
We don’t yet know if this applies only to cars built after a certain date, cars already in the UK, or new factory orders. Frankly, we're still waiting for full clarification—and we’ll update you as soon as we know more.
âś… Who Does Qualify?
One group of manufacturers that do appear well-positioned is the Volkswagen Group (VAG), which includes:
- Volkswagen
- Skoda
- Cupra
These brands already have SBTi-approved climate targets and are known to have invested heavily in clean manufacturing. So it’s very likely that many of their EVs will qualify for either the £1,500 or £3,750 grant, depending on model and spec.
đźš— Which Cars Are Likely Eligible?
Based on the government’s terms, the cars that would be applicable for the grant under the £37,000 price cap and have qualifying credentials (subject to final confirmation) may include:
- Volkswagen ID.3
- Skoda Enyaq (entry-level trims)
- Cupra Born
- Vauxhall Corsa Electric
- Peugeot e-208
- MG4
(Keep in mind: pricing, production location, and emissions data may affect final eligibility.)
đź•’ So, What Happens Now?
Right now, it’s a waiting game. We’re still waiting on finalised lists from the Office for Zero Emission Vehicles (OZEV), and manufacturers need to apply for eligibility based on how and where each vehicle is built.
Until then, we can only pass on confirmed information when asked, and help guide you toward vehicles that are most likely to qualify.
🧮 Don’t Forget the Fuel Savings
Grant or no grant, switching to electric could still save you hundreds every year in running costs.
Want to see exactly how much?
👉 Try our Electric Running Cost Calculator
Enter your mileage and fuel spend to see the difference an EV could make.
âś… Leasing With National Vehicle Solutions
At National Vehicle Solutions, we keep things honest and up-front. Whether you’re chasing a low-cost EV, exploring SBTi-compliant brands, or want to make the most of the new grant—we’re here to help you every step of the way.
Browse our deals, ask us the tough questions, and we’ll give you clear answers. No nonsense.
🔍 Browse our EV lease deals
📞 Need guidance? Call us—we’ll talk you through your options.
National Vehicle Solutions – helping you drive greener, cheaper, smarter.
Disclaimer
The information provided in this article is based on the most recent government updates and publicly available manufacturer data as of July 2025. Details about the electric car grant scheme, vehicle eligibility, and brand sustainability commitments (including SBTi status) may change over time. We recommend checking with official sources or contacting us directly to confirm the most up-to-date information before making a decision.