The UK government has officially launched its new Electric Car Grant (ECG), with French automaker Citroën becoming the first manufacturer to have six of its electric models deemed eligible for the £1,500 discount. This initiative, backed by £650 million in taxpayer funding through the 2028-2029 financial year, aims to significantly reduce the upfront cost of electric vehicles for consumers, thereby accelerating the nation's transition to sustainable transport.

The eligible Citroën models include the ë-C3, ë-C3 Aircross, ë-C4, ë-C4 X, ë-Berlingo, and the new ë-C5 Aircross. Notably, the grant reduces the starting price of the ë-C3 to £20,595, positioning it competitively against rivals such as the £21,035 Fiat Grande Panda Elettrica and the £21,950 BYD Dolphin Surf Boost. Only a few models, including the BYD Dolphin Surf Active (£18,650), Hyundai Inster (£19,755), and Leapmotor T03 (£14,495), offer a lower entry point into the UK's new electric car market. The ë-C3 Aircross now starts at £21,595, the ë-C4 at £26,150, the ë-C4 X at £27,215, the ë-Berlingo at £29,740, and the ë-C5 Aircross at £32,565, making a range of electric options more accessible.

Unlike its predecessor, the Plug-in Car Grant (PiCG), the ECG automatically applies the discount at the point of sale, eliminating the need for buyers to register for the subsidy. Transport Secretary Heidi Alexander stated, "This summer, we’re making owning an electric car cheaper, easier and a reality for thousands more people across the UK." Greg Taylor, Managing Director of Citroën UK, welcomed the support, expressing delight that Citroën's electric range was the first to be approved.

To qualify for the grant, which offers discounts of either £1,500 or £3,750 based on environmental impact, models must have an entry-level price below £37,000. Crucially, manufacturers must meet stringent, science-backed emissions targets, assessing the CO2 emitted during production, vehicle assembly, and battery manufacturing. While the specific threshold levels remain undisclosed, the criteria are expected to favor vehicles with lower overall environmental footprints, potentially impacting the eligibility of cars produced in certain regions.

This grant complements broader government efforts to bolster the UK's EV ecosystem. Since July 2024, over 17,300 public chargepoints have been added to the UK network, marking a 27% increase and bringing the total to over 82,000. This infrastructure expansion, alongside the Zero Emission Vehicle (ZEV) Mandate requiring increasing percentages of zero-emission vehicle sales, underscores the government's £4.5 billion investment to accelerate EV adoption and support the automotive sector.