Volkswagen announces huge price cuts to popular models as 20,000 Britons use Electric Car Grant

Felix Reeves

By Felix Reeves


Published: 16/10/2025

- 13:12

Updated: 16/10/2025

- 13:13

There are now more than 35 vehicles eligible for the Electric Car Grant discounts

Two new models have been selected by Labour to be eligible for the Electric Car Grant, as more than 20,000 Britons make use of the incentive scheme.

Volkswagen has confirmed that its popular ID.4 and ID.5 models will now be included in the scheme, alongside the ID.3.


All three of the vehicles will be eligible for the £1,500 discount, with both models now seeing prices drop from £36,995 to £35,495.

The £1,500 discount will be automatically applied at the point of purchase, removing the need for drivers to apply or fill out any paperwork.

The £650million Electric Car Grant can help motorists save either £1,500 or £3,750 off the price of a new electric car with a list price of £37,000 or less.

While there are just two models eligible for the upper £3,750 grant, namely the Ford Puma Gen-E and the e-Tourneo Courier, 35 cars are included in the smaller incentive.

Volkswagen outlined that it had met stringent technical and sustainability standards set by the Government to be eligible for the ECG.

It highlighted that these pledges were already part of its manufacturing process, including using hemp-based imitation leather.

The Volkswagen ID.4 and VW ID.5

The Volkswagen ID.4 and VW ID.5 are now eligible for the £1,500 EV grant

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VOLKSWAGEN

These environmental and sustainability targets have seemingly restricted a number of popular car brands from benefiting from the discounts included in the scheme.

Speaking at the time of the grant's launch, then-Future of Roads Minister Lilian Greenwood highlighted that Chinese brands may not qualify for the grant because of pollution concerns.

The Labour MP for Nottingham South noted that many Chinese factories producing electric vehicles are still powered by coal and other fossil fuels.

Data from the Department for Transport shows that more than 20,000 people have already made use of the Electric Car Grant.

Commenting on the success of the Electric Car Grant, Transport Secretary Heidi Alexander highlighted how it was making a difference to motorists.

She said: "Our discounts have sparked a surge in electric car sales, making them cheaper and within reach of more households than ever before.

"By cutting costs for families we're supporting industry, backing British jobs, and powering up growth - all part of delivering our Plan for Change."

Data from the Society of Motor Manufacturers and Traders (SMMT) shows that September was one of the best months ever for electric vehicles, with 72,779 new EVs registered in "new reg plate month".

The Electric Ford Puma Gen-EThe Ford Puma Gen-E is one of two Ford models eligible for the £3,750 Electric Car Grant incentive | FORD

Eligible EVs for the £3,750 Electric Car Grant

  • Ford Puma Gen-E
  • Ford e-Tourneo Courier

Eligible EVs for the £1,500 Electric Car Grant

  • Citroen e-Berlingo
  • Citroen e-C3 and e-C3 Aircross
  • Citroen e-C4 and e-C4 X
  • Citroen e-C5 Aircross
  • Citroen e-SpaceTourer
  • Cupra Born
  • DS DS3
  • DS Nº4
  • Nissan Ariya
  • Nissan Micra
  • Peugeot e-208
  • Peugeot e-308
  • Peugeot e-408
  • Peugeot e-2008
  • Peugeot e-Rifter
  • Peugeot e-Traveller
  • Renault Alpine A290
  • Renault Megane
  • Renault Scenic
  • Renault 4
  • Renault 5
  • Skoda Elroq
  • Skoda Enyaq
  • Toyota bZ4X
  • Toyota Proace City Verso
  • Vauxhall Astra Electric
  • Vauxhall Combo Life Electric
  • Vauxhall Corsa Electric
  • Vauxhall Frontera Electric
  • Vauxhall Grandland Electric
  • Vauxhall Mokka Electric
  • Vauxhall Vivaro Life Electric
  • Volkswagen ID.3
  • Volkswagen ID.4
  • Volkswagen ID.5