Major car brands launch new £1,500 electric vehicle incentive to challenge Labour's delayed EV grant

Motorists can save up to £1,500 off the price of several popular electric cars
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Three of the most popular car brands in the UK have launched a new "Grant Guarantee" which will help motorists save money on the price of a new electric vehicle.
Volkswagen, Skoda and Cupra have all launched the "Grant Guarantee" to slash up to £1,500 off the list price of an EV for the next month.
The incentive is available to drivers who order an eligible vehicle from the three manufacturers before August 31 and take delivery from September 1, 2025.
Drivers will be able to save on the popular Volkswagen ID.3 and ID.4 models, in addition to Skoda Elroq and Enyaq variants, and Cupra Born trims.
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Volkswagen, Skoda and Cupra have introduced the new £1,500 Grant Guarantee
|SKODA/VOLKSWAGEN
Volkswagen noted that it would honour the £1,500 grant on the vehicles specified, even if the Government's Electric Car Grant is not awarded.
However, drivers will not be able to benefit from both the Volkswagen Grant Guarantee and Labour's Electric Car Grant.
Labour announced its plans to introduce a £650million EV incentive in July to help more motorists ditch petrol and diesel vehicles and invest in electric.
Through the ECG, motorists can save up to £3,750 on a new electric vehicle if it costs less than £37,000.
READ MORE: Electric car grant hailed as a 'significant step forward' as drivers could save £3,750 on new EVs
The Grant Guarantee offer is available until August 31
|SKODA
The move will also help manufacturers meet goals included in the Zero Emission Vehicle (ZEV) mandate, which outlines that brands must have a minimum percentage of sales come from electric cars.
By the end of the year, the target amount is set at 28 per cent, before rising to 80 per cent at the end of the decade and 100 per cent in 2035, when all new car sales will be zero emission.
The Government has yet to finalise which vehicles will be eligible for discounts under the ECG, with suggestions that major brands may not be included.
Future of Roads Minister Lilian Greenwood suggested that Chinese brands would be ineligible, given that many EV manufacturing plants rely on coal for power, which would go against the Government's "Science Based Targets".
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The Volkswagen ID.4
|VOLKSWAGEN
As a result of the uncertainty, many brands are launching grant schemes as Labour continues to deliberate on which cars and manufacturers will be eligible under the scheme.
Rod McLeod, Director of Volkswagen UK, said the automaker "wanted to make sure customers could start benefitting from lower-cost electric motoring as quickly as possible".
Similarly, Matthew Bowden, UK brand director for Skoda, said: "Skoda has always delivered for our customers, and with the introduction of the 'Grant Guarantee', we're taking that to the next level."
This was echoed by Seat Cupra UK's managing director, Marcus Gossen, who described it as a "great opportunity" for customers, adding that "we're allowing everybody to take advantage".
The Cupra Born
|CUPRA
Electric models included in the Grant Guarantee
Volkswagen
- ID.3 Pure Essential 52 kWh 170 PS
- ID.3 Pure Match 52 kWh 170 PS
- ID.3 Pro Essential 59 kWh 204 PS
- ID.3 Pro 59 kWh 204 PS
- ID.3 Pro Match 59 kWh 204 PS
- ID.3 Pro S Essential 79 kWh 204 PS
- ID.3 Pro S 79 kWh 204 PS
- ID.3 Pro S Match 79 kWh 204 PS
- ID.4 Pure Match 52 kWh 170 PS
- ID.4 Pro Match 77 kWh 286 PS
- ID.4 Pro Black Edition 77 kWh 286 PS
- ID.4 Pure Essential 52 kWh 170 PS
- ID.4 Pro Essential 77 kWh 286 PS
Skoda
- Elroq SE 50
- Elroq SE L 60
- Elroq SE L 85
- Elroq Edition 60
- Elroq Edition 85
- Elroq SportLine 60
- Elroq SportLine 85
- Enyaq SE L 60
- Enyaq Edition 60
- Enyaq Edition 85
- Enyaq SportLine 85
Cupra
- Born V1 59 and 79 kWh batteries
- Born V2 59 and 79 kWh batteries
- Born V3 59, 77 and 79 kWh batteries