The UK government has just announced a major new £650 million Electric Car Grant (ECG), offering drivers up to £3,750 off the price of a new electric car priced at £37,000 or less.
Drivers who buy EVs priced at £37,000 or less will receive either £3,750 or up to £1,500 off at the point of sale. Cars fall into one of two bands depending on the emissions they produce during the manufacturing process. Those in 'band one' will receive the full £3,750 discount, whilst those in 'band two' will receive up to £1,500 off. Specific figures relating to these bands have not yet been released.
Along with a host of other EV incentives, this move is designed to make electric vehicles more accessible to everyday drivers and help meet the 2030 goal of phasing out new petrol and diesel sales.
Whilst the full list of eligible models hasn't been confirmed yet, car manufacturers can begin applying from July 16, 2025, and it's expected that many of the most popular and affordable electric models on the market will qualify.
Below are five standout EVs that are priced under £37,000 and very likely to be eligible for the full discount.
Vauxhall Frontera Electric
Vauxhall's revived Frontera brings an all-electric twist to the brand's SUV lineup. With a current, non-discounted starting price of £23,495, it offers practicality, a spacious cabin, and a decent electric range, making it an attractive family car. It's built on the Stellantis STLA platform, meaning you can expect efficiency and smart tech features without breaking the bank.
New Nissan Leaf (Arriving Late 2025)
Nissan's iconic Leaf is getting a major upgrade later this year. The next-generation Leaf promises more range, better design, and cutting-edge driver-assist features. With an expected starting price below £35,000, it's shaping up to be one of the best-value electric hatchbacks on the market, especially with a potential £3,750 grant knocking the price even lower.
Explore the Upcoming Nissan Leaf
MINI Cooper E
The all-electric MINI Cooper E blends classic British design with modern electric performance. Starting from around £27,000, the Cooper E is perfect for urban drivers who want a fun, premium-feeling EV. Despite its compact size, it doesn't compromise on tech or refinement, and its sharp handling keeps the iconic MINI driving spirit alive.
Renault 5 E-Tech
One of the most anticipated EV launches of 2025, the Renault 5 E-Tech is a stylish electric supermini packed with retro flair. Priced comfortably in the low £20,000s, it's one of the most affordable EVs on the market. Great for city driving, it combines personality with practicality. If it qualifies for the grant, you could get behind the wheel for a steal.
New Nissan Micra (Arriving Late 2025)
Also launching towards the end of 2025, the all-electric Nissan Micra is set to bring affordability and style to the small car segment. Co-developed with Renault, it will likely share tech with the Renault 5 whilst keeping the Micra's familiar character. The starting price isn't yet confirmed, but assuming the new Micra is priced in line with Nissan's other offerings, we strongly expect it to be eligible for the government grant.
Ready to Go Electric?
With dozens of electric vehicles priced under £37,000, this new grant has the potential to make EVs more affordable than ever before. Keep an eye out for confirmed edibility lists in the coming days. If you're in the market for a new car, this might be the perfect time to go electric.
If you've been thinking about making the switch, there's never been a better time to buy electric. At Vertu, we've been selling and servicing EVs for years and are ready to help guide you through the process - from your first test drive to your recurring services.
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