Best EVs under £37k: Top Electric Car Grant picks, and how the grant works
With a new £3,750 discount on the way, we round up the best EVs under £37,000 and look at how the Electric Car Grant will work
After months of campaigning by car makers, the UK government has announced a new Electric Car Grant that commits £650 million to cutting the price of some new electric cars.
Designed to make EVs more accessible and help stimulate the new car market, the Electric Car Grant is targeted at cars priced under £37,000 and will offer discounts of up to £3,750.
The move will make some of the country’s most affordable electric models even cheaper and has been widely welcomed by the car industry. Manufacturers previously warned that without such help, the ZEV mandate targets would be unattainable.
Details of the scheme are still emerging, but here’s what we know about how it will work, what cars will qualify and our pick of the best EV under £37k.
How does the electric car grant work?
Some details remain obscured by government jargon but we know that the grant will apply to electric passenger cars priced under £37,000. That’s currently 50 models from 27 brands but doesn’t include big names such as Tesla, Audi or BMW.
You can find a full current list later in this article, but car makers may adjust prices of other models to bring them under the threshold.
Car makers will have to apply to add their vehicles to an approved list of eligible cars. Once approval is granted, they will automatically apply the discount to the list price of the vehicle. Customers won’t need to fill out any additional paperwork or apply for the discount individually.
There are two bands of grants based on a cars’ environmental credentials. Band one cars will qualify for the full £3,750 discount while band two cars will get a £1,500 reduction. The banding will be based on verified “Science-Based Targets” on carbon emissions linked to vehicle and battery production. It is not yet clear where the threshold lies for the different bands.
Basic requirements for qualification include a WLTP range of at least 100 miles, zero tailpipe emissions and a battery warrantied to retain at least 70% usable capacity for at least eight years or 100,000 miles.
Applications for grant eligibility opened on July 16 and the digital system to lodge sales will open on August 11. The Department for Transport said it expected grants to be offered to consumers in advance of this date as soon as applications are approved.
What cars are eligible for the Electric Car Grant?
As of July 16, 51 electric models from 27 brands have starting prices under £37,000. We’ve listed them below but please note that some higher-specification variants of some models will exceed the threshold.
We would also expect some cars close to the limit, such as the £37,195 Renault Scenic, to receive minor price cuts to help them qualify.
Every EV potentially eligible for the ECG
| Model | Starting price | Model | Staring price |
|---|---|---|---|
| Dacia Spring | £14,995 | BYD Dolphin | £30,205 |
| Leapmotor T03 | £15,995 | Volkswagen ID.3 | £30,860 |
| BYD Dolphin Surf | £18,650 | Skoda Elroq | £31,150 |
| Fiat Grande Panda | £21,035 | Citroen E-Berlingo | £31,240 |
| Citroen E-C3 | £22,095 | Toyota Proace City Verso | £31,995 |
| Renault 5 | £22,995 | Peugeot E-Rifter | £32,250 |
| Hyundai Inster | £23,005 | Vauxhall Mokka | £32,430 |
| Citroen E-C3 Aircross | £23,095 | Renault Megane | £32,495 |
| Vauxhall Frontera | £23,995 | Mini Countryman | £33,005 |
| GWM Ora 03 | £24,995 | Kia EV3 | £33,005 |
| Fiat 500e | £25,035 | Volvo EX30 | £33,060 |
| Vauxhall Corsa | £26,780 | Omoda E5 | £33,065 |
| Mini Cooper | £26,905 | Alpine A290 | £33,500 |
| Renault 4 | £26,995 | Alfa Romeo Junior | £33,905 |
| MG4 | £26,995 | Smart #3 | £33,960 |
| Citroen E-C4 | £27,650 | Vauxhall Astra | £34,130 |
| MGS5 | £28,495 | Hyundai Kona | £34,500 |
| Citroen E-C4 X | £28,715 | Peugeot E-2008 | £35,400 |
| Mini Aceman | £28,905 | Cupra Born | £35,690 |
| Smart #1 | £29,960 | Vauxhall Grandland | £36,455 |
| Abarth 500e | £29,985 | MG4 XPower | £36,495 |
| Ford Puma Gen-E | £29,995 | Leapmotor C10 | £36,500 |
| Jeep Avenger | £29,999 | Abarth 600e | £36,985 |
| Suzuki e Vitara | £29,999 | KGM Torres EVX | £36,995 |
| Fiat 600e | £30,035 | Skywell BE11 | £36,995 |
| Peugeot E-208 | £30,150 |
What are the best EVs under £37k?
While there are plenty of cars that should qualify for the Electric Car Grant, some are better than others, so here are five of our favourites.
Renault 5
- Current price: £22,995
- Price after band one grant:£19,245
- Eligible variants: Evolution; Techno; Iconic Five, Rolland Garros
The Renault 5 is one of EV Powered’s favourite cars of 2025 so far. It offers great looks, clever technology and bundles of style in a city-friendly five-door hatchback body. Even before the grant it represents great value and with prices cut by almost £4,000 it seems like a steal.
Even basic models come with LED lights, two-zone climate control, cruise control and a 199-mile range from a 40kWh battery. Top-end cars offer up to 250 miles from a 52kWh unit, a more powerful 148bhp motor and lots of ‘big-car’ features while still sitting well below the cut-off.
Citroen E-C3
- Current price: £22,095
- Price after band one grant: £18,345
- Eligible variants: Plus; Max
Like the Renault 5, the Citroen E-C3 is a well-considered, well-positioned compact EV. It has crossover looks but a supermini footprint and offers a usable range of up to 199 miles from its 44kWh battery. On top of that, it offers class-leading comfort thanks to the standard-fit Advanced Comfort seats and suspension.
Even basic Plus versions feature 17-inch alloys, LED lights, parking sensors and a 10.25-inch infotainment system; and top-spec Max cars should also qualify for the grant.
Kia EV3
- Current price: £33,005
- Price after band one grant: £29,255
- Eligible variants: EV3 Air
Kia’s run of EV brilliance continues with its smallest model to date, the EV3. Although it’s a compact SUV, the EV3 offers enviable amounts of space for the money, as well as refinement to rival cars in the class above.
Only the entry-level Air grade currently falls under the £37,000 threshold but that still brings heated seats and steering wheel, smart highway assist driving and a reversing camera. More importantly, both battery versions should qualify for the grant. That means buyers can choose from the cheaper 51.3kWh unit with 270 miles of range or the 81.4kWh model with up to 376 miles.
Skoda Elroq
- Current price: £31,510
- Price after band one grant: £27,760
- Eligible variants: SE 50; SE L 60; Edition 60
The Elroq ticks so many of the same boxes as the EV3 that it’s hard to pick between them. Unlike the Kia with its one motor and two battery choices, the Skoda comes with three battery and three motor options. Only the two smaller batteries and three lowest trim levels fall below £37,000 but there’s still plenty there for most drivers.
The cheapest SE 50 manages 233 miles of range from a 52kWh battery and includes wireless phone mirroring, reversing camera and 19-inch alloys in its standard kit. The SE L 60 pushes range to 366 miles and gets touches such as heated seats and sat nav, while the Edition 60 adds sharper styling and adaptive cruise while remaining under the £37k mark.
Vauxhall Grandland
- Current price: £36,455
- Price after band one grant: £32,705
- Eligible variants: Design
The Vauxhall Grandland is worthy of inclusion on this list for offering a proper family-sized SUV for thousands less than key rivals. Vauxhall’s smart decision to position every version below the £40,000 Expensive Car Supplement is really paying off now, with the Design trim likely to see its list price tumble to less than £33,000 if the grant is applied and the GS trim close to the threshold.
It’s not the most exciting thing to look at or drive, but the Grandland has bags of space for a family, all the basic kit you’d need and impressive ride and refinement. The entry-level Design also still gets a 73kWh battery good for more than 300 miles or range and competitive 160kW charging.
