The UK government has expanded its Electric Car Grant (ECG), adding four new electric vehicle (EV) models to the top discount tier. This means buyers of the Renault 4, Alpine A290, Mini Countryman, and the 52kWh Renault 5 can now receive a £3750 incentive, effectively lowering their purchase price.
Expanding Eligibility
The newly eligible vehicles join eight other models – including the Nissan Leaf and Ford Puma Gen-E – in the ECG’s highest band. The remaining 35 EVs qualify for a lower £1500 discount. Notably, the base-model Renault 5 with a smaller battery does not meet the criteria for the top-tier grant, highlighting the scheme’s focus on models with stricter emissions standards.
This expansion comes alongside a £1.5 billion investment in the ECG, extending its availability until 2030. However, the government also plans to introduce a pay-per-mile road tax for EVs starting in 2028, signaling a shift toward broader taxation of electric vehicles as their market share grows.
Industry Response
Transport Secretary Heidi Alexander emphasized the government’s commitment to EV adoption, stating that the grant has already supported over 40,000 drivers. Renault Group UK managing director Adam Wood praised the decision, pointing to the company’s investment in European battery manufacturing as a factor in securing the top-tier grant.
The expansion of the ECG is expected to further stimulate EV sales in the UK, but the introduction of future road taxes suggests a longer-term strategy of balancing incentives with sustainable revenue generation. This shift reflects the broader challenge of transitioning to electric mobility while maintaining government funding streams.
