Currently reading: Government tightens EV grant scheme with new £42k cap

More expensive variants of sub-£37k cars previously qualified for grant; DfT narrows the loophole

The government has tightened the criteria for its new Electric Car Grant so that fewer cars are eligible for discounts just because one variant is priced under the £37,000 threshold.

The ECG, launched last month, is available to electric cars priced at £37,000 or under – with discounts of either £1500 or £3750 available. However, the eligibility for each model was determined by the cheapest version of each powertrain variant, meaning only one version needed to be priced under that threshold for more expensive trim levels to qualify for the grant.

But now Autocar can reveal that there will be a new upper threshold of £42,000 for pricier variants of cars that come in at under £37,000.

Previously, for example, all front-driven versions of the Nissan Ariya qualified for the £1500 grant – following the recent addition of a new sub-£37,000 entry variant – up to the £44,500 Evolve trim, which uses the same drivetrain.

The imposition of a new £42,000 threshold means that fewer versions of the front-driven Ariya will be eligible for the grant.

The change will be effective from midnight tonight (00:01 on 29 August) and the government will publish a new list of eligible vehicles.

In a statement sent to Autocar, the Department for Transport said: “The Electric Car Grant is putting money back in people’s pockets whilst also providing a vital boost for industry. The maximum price limit ensures only eligible cars priced at the lower end of the market can qualify for the discounts, ensuring government support is targeted.”

The news comes after the government yesterday awarded the full £3750 discount to the first two cars – the Ford Puma Gen-E and E-Tourneo Courier.

It means that 28 different models now qualify for a grant, with more likely to be added over the coming weeks. 

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Felix Page

Felix Page
Title: Deputy editor

Felix is Autocar's deputy editor, responsible for leading the brand's agenda-shaping coverage across all facets of the global automotive industry - both in print and online.

He has interviewed the most powerful and widely respected people in motoring, covered the reveals and launches of today's most important cars, and broken some of the biggest automotive stories of the last few years. 

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