Volkswagen Group launches £1,500 ‘Grant Guarantee’ to support EV buyers
Volkswagen Group has announced a new £1,500 discount across selected electric vehicles under a new ‘Grant Guarantee’ scheme, giving retail customers immediate savings ahead of the Government’s upcoming Electric Car Grant (ECG).
The scheme applies to popular models including the Volkswagen ID.3 and ID.4, the Cupra Born, and the Skoda Enyaq and Elroq, ensuring customers can benefit from more affordable electric motoring before the official Government support comes into effect.
Rod McLeod, Director of Volkswagen UK, welcomed the move: “We welcomed the Government’s announcement of its Electric Car Grant and wanted to make sure customers could start benefitting from lower-cost electric motoring as quickly as possible. We’ve already seen an uplift in enquiries, which is great news for Volkswagen’s electrification plans.”
Government Electric Car Grant: What we know so far
The UK Government’s new £650 million electric car grant scheme is designed to support the adoption of battery electric vehicles (BEVs) under £37,000 RRP, offering two levels of support based on manufacturers’ environmental credentials:
• Band One: Up to £3,750 off qualifying vehicles made by manufacturers with science-based net-zero targets and low embodied carbon levels.
• Band Two: Up to £1,500 for vehicles that meet minimum sustainability requirements.
To qualify, manufacturers must have committed to a Science-Based Target (SBT) and must meet embodied carbon thresholds as verified by the Department for Transport (DfT). Models from manufacturers without a verified SBT will not be eligible for any grant.
The DfT has indicated that Chinese-made EVs—or those using batteries manufactured in China—may struggle to qualify under the sustainability rules. This includes brands such as Leapmotor, GWM Ora, and MG, who are expected to introduce their own incentive schemes to remain competitive.
Some European marques with manufacturing operations or supply chains in China may also only qualify for the lower £1,500 band, or potentially not at all, depending on the specifics of their production footprints.
The Volkswagen Group’s early rollout of its Grant Guarantee is expected to stimulate further competition across the electric car market, as manufacturers seek to capture buyers ahead of the Government’s formal ECG launch.
With consumer interest rising and cost-of-living concerns still front of mind, up-front discounts—particularly from trusted European brands—may prove pivotal in accelerating EV adoption among private buyers.
