8:35 am, September 2, 2025
Detailed research by Car Dealer Magazine reveals there could be just TWO electric cars available for the full Electric Car Grant for months.
In total, just SIX cars may eventually be eligible for the full government discount, but four of these cars do not even have a launch date.
Billed as a way of getting more drivers into EVs by the government, the headline discount rate has been incredibly hard to qualify for.
Nearly two months on from launch, just two Ford models are available for the headline discount and only 10 car manufacturers have managed to get grants signed off at the lesser £1,500 rate.
An incredible 26 car manufacturers are completely ineligible for grants, either because their cars cost more than the £37,000 maximum or their manufacturing locations rule them out automatically.
As of today, there are 35 cars available for the Band 2 rate from those manufacturers and only two in Band 1.
Confusion surrounding the scheme among consumers has caused paralysis in dealerships as customers hold off buying electric cars in the hope they will get the full rate £3,750 discount.
‘Every customer we speak to is expecting £3,750 off their electric car – most don’t even know there is a second tier rate of £1,500,’ said one car dealer boss.
‘The fact that only two cars are available for the full rate is laughable. We’re nearly two months on from the launch and it looks like there’ll be hardly any cars available for top rate discounts. It’s a joke.’
Other dealers branded the implementation of the scheme as ‘shambolic’.
Which cars may get the Band 1 Electric Car Grant?
Today, Car Dealer Magazine research, in conjunction with electric car experts, shows that the tough criteria could mean that the Band 1 grants may only be handed out to:
- Ford Puma Gen-E – approved
- Ford E-Tourneo Courier – approved
- Nissan Leaf – possible, but not on sale yet
- Citroen C5 Aircross Long Range – possible, but not on sale yet
- Vauxhall Grandland Long Range – possible, but not on sale yet
- Vauxhall Frontera Long Range – possible, but not on sale yet
Car Dealer Magazine asked every manufacturer selling cars in the UK whether they had applied for the grants with the Department for Transport and if they thought they would be successful.
The DfT looks at the eco credentials of each car maker before placing qualifying cars in either the top rate £3,750 Band 1 category or the lower £1,500 Band 2 category.
Where the car is made and how the electricity grid in that country is produced, the manufacturing location for the battery, as well as a number of other eco goals, are all assessed before a decision is made.
Two manufacturers – Audi and Kia – told Car Dealer Magazine they had not applied for any grants, while two others – Lexus and Mini – said they are still waiting for confirmation of which grant, if any, they will get.
Of those two manufacturers, it is unlikely any of their cars will qualify for the top Band 1 rate.
Five manufacturers did not respond to a request for comment, but none of those are likely to get Band 1 status either due to where their cars are made or the price point of their EVs.
Tom Barnard, from electric car website Electrifying.com, who helped with the research, said: ‘We are finally starting to see deals on some cars that are attractive to new buyers – especially on the Ford Puma Gen E – which will offer a welcome boost to the EV market.
‘But the way the grants have been introduced has caused massive confusion and added unnecessary complication.
‘The car makers and dealers still seem unsure about the process and eligibility and there are customers cancelling their cars and putting off purchases while they wait for news to see if they can bag the grant.
‘No doubt it will all settle down but there have been six weeks of chaos and confusion which could’ve been avoided with a clear plan.’
One car dealer group boss called the scheme ‘shambolic’ and blasted the delays the grants were causing to EV sales in showrooms.
‘Customers are holding off buying EVs and deals are falling through,’ he said.
Edmund King, AA President, added: ‘The Electric Car Grant is sophisticated and complex as it had to balance the dual aims of encouraging sales whilst also supporting the industry and jobs.
‘Even if the full list of eligible cars was published at the same time to remove any risk of potential buyers delaying their purchases, that is still likely to have still happened as most of the additional vehicles likely to qualify for the full grant aren’t yet on sale.
‘Whilst not perfectly executed, the Electric Car Grant is a welcome initiative needed to boost demand.’
Mike Hawes, the SMMT chief executive, added: ‘The grant is a welcome response to consistent industry calls for an EV incentive to support consumer demand and comes on top of the substantive subsidies already provided by manufacturers.
‘Additional eligible models are being confirmed all the time, which is good news and, as we enter September’s critical number-plate change, rapid processing of applications is now essential to ensure the greatest possible choice for consumers and certainty for the market.’
The DfT has been contacted for comment.
