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Car manufacturers respond to new electric car grant with their own incentives: Vauxhall adds 拢500 savings across its range

August 22, 2025 by

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Electric car makers have started launching their own discounts as the government begins to roll out its new 拢650m EV grant, with Vauxhall among the latest to offer more incentives.

Car makers are starting to offer discounts on electric cars in response to the government鈥檚 new electric car grant, which could save buyers up to 拢3,750 on a new EV. It鈥檒l apply to electric cars which cost less than 拢37,000 and meet certain environmental criteria, and the first wave of eligible models has been announced.

There is some uncertainty on whether Chinese brands, which offer some of the most affordable electric cars on the market, will be included. As a result, many have started offering their own discounts to tempt buyers in.

Remember, you can buy a brand new or used car right here on 莲花直播. And you can sell your car, too. We鈥檙e here to help you through every step of your car-changing journey.

Chinese brands fight back against electric car grant by offering their own discounts

Rather than waiting around for the government to decide whether Chinese models can be included, Great Wall Motors, Skywell and Leapmotor have launched their own discounts which match the government grant. MG is also giving customers 拢1,500 off a new S5 EV or MG4.

BYD offers five years of free servicing in lieu of discounts

Chinese brand BYD may not be offering money off a new electric car in response to the government鈥檚 EV grant, but it is giving customers five years worth of free maintenance on the Atto 3, Dolphin, Dolphin Surf and any approved used BYD model when you buy through its dealers.

BYD has formally applied to be included in the electric car grant, however it may not be eligible to begin with. Steve Beattie, Sales and Marketing Director at BYD UK, said: 鈥淲e understand that customers are looking for more than just savings upfront 鈥 they want lasting value and assurance. While we may not currently be part of the Electric Car Grant, we didn鈥檛 want to wait to show our commitment.鈥

Leapmotor launches the Leap Grant

Newcomer Leapmotor isn鈥檛 going to wait for the government to make up its mind on the EV grant, because it鈥檚 offering up to 拢3,750 off the C10 SUV. This brings it down to 拢32,750, which is still more expensive than a Skoda Elroq.

The tiny T03 city car has also been discounted by 拢1,500, so it now costs 拢14,995. That鈥檚 exactly the same as a Dacia Spring, but the Leapmotor comes with much more standard equipment.

Commenting on the launch of the new Leap Grant, Leapmotor鈥檚 managing director Damien Dally said: 鈥淥ur mission is to help make the leap to electric cars easy for UK drivers. We鈥檝e decided to act now because we want to give customers clarity, confidence, and immediate savings 鈥 and make the switch to electric a simple choice鈥

MG offering 拢1,500 discounts

You can now get a 拢1,500 discount on a new MG S5 EV or MG4 electric car, and that鈥檚 on top of any other offers available from the brand.

Guy Pigounakis, Commercial Director for MG, said: 鈥淢G has been a key contributor to the EV sector, consistently recognising the economic and environmental benefits of introducing a wide range of affordable, electric-only models. Today鈥檚 announcement underlines this commitment and in addition to this, we will also seek to work constructively with the Government to further increase the sale of EVs.鈥

The MG4 is a former 莲花直播 Car Of The Year, and this discount brings the price down to a very competitive 拢25,500. That鈥檚 over 拢5,000 less than a Volkswagen ID3. As for the MG S5 EV, that will start from just 拢27,000 with this offer applied.

GWM offers offers 拢3,750 off the Ora 03

Great Wall Motors (GWM) has launched what it calls the Green Grant, which gives customers 拢3,750 off a new Ora 03. This can be used towards the total cost of the car, or it can be used as part of the deposit on a PCP finance package.

The Green Grant is available on all versions of the Ora 03, including the sporty GT model. It also brings the cost of a basic version down to just 拢21,245. That鈥檚 around 拢10,000 less than a Volvo EX30.

Toby Marshall, GWM鈥檚 UK managing director, said: 鈥淲e don鈥檛 believe our customers should have to wait for the government to decide which vehicles qualify for the EV grant. So, we鈥檝e taken matters into our own hands and matched the 拢3,750 saving, available to everyone, right now, on our ORA 03 range.鈥

The Ora 03 is a funky-looking little electric car which comes with loads of kit as standard. It may not be the most practical, and some of the tech is fiddly and annoying to use, but it鈥檚 easy to forgive these drawbacks with a price this low.

Skywell to match government grant on new BE11

Skywell is a new entrant to the UK market, and it鈥檚 launched with the BE11 electric SUV. It was already offering a 拢6,000 deposit contribution on this car, but now it鈥檚 also giving customers an additional 拢3,750 off to match the government grant.

These two offers combined bring the starting price of the BE11 down from 拢36,995 to 拢27,245.

Other brands also getting in on the action

It鈥檚 not just Chinese brands which are cashing in on the new electric car grant, because Kia, Hyundai, Volvo, Vauxhall, Toyota and Alfa Romeo have all announced discounts to tempt buyers towards their EVs.

Vauxhall offers 拢1,500 off all its electric cars, plus extra 拢500 savings

You can get 拢1,500 off any new electric Vauxhall as the brand introduces its own grant to tempt buyers into EVs. It applies to electric versions of the Corsa, Astra, Astra Estate, Mokka, Frontera and the Grandland.

Vauxhall is also running a sales event from 23 August to 8 September, giving 拢500 off the list price of any car. This discount can be combined with the electric car grant, meaning EV buyers could see some of the biggest savings.

Toyota cuts prices on hybrid and electric cars

Not wanting to be outdone, Toyota has announced a raft of savings across most of its model range 鈥 not just its sole all-electric model, the bZ4X.

Customers can now save up to 拢1,000 on a Yaris or Yaris Cross Hybrid. A 拢1,500 saving is available on the Corolla and C-HR ranges, the RAV4 and the Prius. Meanwhile, a government grant-matching 拢3,750 price cut is available for the bZ4X, bringing its starting price down to just 拢36,995 for the 鈥楶ure鈥 model.

This cut pushes the bZ4X below the 拢37,000 eligibility threshold for the EV grant, so it鈥檚 possible that it could get a further price cut.

Fiat reintroduces E-Grant of 拢1,500

Fiat is offering 拢1,500 off the 500e and 600e, as well as the sporty Abarth versions of both cars. This isn鈥檛 the first time the Italian brand has offered discounts to incentivise people to buy electric cars either.

Back in 2023, after the previous Tory government scrapped the original plug-in grant, Fiat was the first to launch its own scheme to tempt drivers towards EV life. Fiat UK managing director, Giuseppe Cava, said: 鈥淔IAT is fully committed to making electrified driving more accessible and by reintroducing our E-Grant for our fully electric models on Fiat and Abarth, we are trying to support customers in their transition to fully electric driving.鈥

Volkswagen鈥檚 new 拢1,500 鈥済rant guarantee鈥

Volkswagen has jumped on the EV grant bandwagon, offering 拢1,500 off selected versions of the ID3 hatchback and ID4 SUV. Rod McLeod, Volkswagen UK director, said: 鈥淲e welcomed the Government鈥檚 announcement of its Electric Car Grant and wanted to make sure customers could start benefitting from lower-cost electric motoring as quickly as possible.

鈥淲e have already seen an uplift in enquiries since the Government鈥檚 grant was announced, which is great news for Volkswagen鈥檚 electrification plans.鈥 This 拢1,500 discount will be available if the government grant is not awarded, but customers won鈥檛 be able to claim the 拢3,750 grant alongside VW鈥檚 offer, which is valid from 1 to 31 of August 2025.

Skoda matches Volkswagen鈥檚 grant

Skoda is also offering the same 拢1,500 discount as Volkswagen on the Elroq and Enyaq SUVs. Like with VW, the offer is only valid if the government grant doesn鈥檛 apply, you can鈥檛 claim both at the same time, and it鈥檚 valid until 31 August.

Smart offers 拢1,500 off the #1 and #3

Smart is the latest brand to hop on the EV grant bandwagon, offering customers a 拢1,500 discount on the #1 and #3 electric SUVs. It already has a 拢2,000 dealer discount on the #1, so this new deal brings the total savings on that car to 拢3,500.

Save 拢1,500 on a new Volvo EX30

Volvo has also a new discount in response to the government鈥檚 electric car grant, giving customers 拢1,500 off a new Volvo EX30. This applies to all versions of this stylish small SUV, whether that鈥檚 the basic single-motor or the ballistically fast Performance model.

We鈥檙e actually running a Volvo EX30 for six months to see how it fares as a daily driver, and you can find out more in our long term report.

Get 拢3,750 off a new Kia EV3

Kia is giving customers a 拢3,750 discount on a new EV3 Air, the most basic model in its lineup. This is up from their previous 拢1,000 contribution, according to EMG Motor Group. This offer is available until 30 September 2025.

Hyundai offering 拢3,750 off a new Inster

Hyundai is offering its own electric grant which gets customers 拢3,750 off a new Inster, bringing the price of this funky little car down to just 拢23,500.

It鈥檚 also giving customers a 拢1,500 discount on all of its other electric models, from the Kona Electric all the way up to the new flagship Ioniq 9.

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