Plug-in Grant 2025: Ford Puma Gen-E first car to qualify for full £3,750 discount
Ford has confirmed its Puma Gen-E and E-Tourneo models are the very first EVs to qualify for the full £3,750 Electric Vehicle Grant.
The result of this is already being reflected on the leasing market, with the Puma Gen-E currently available from around £140 per month*.
This makes it one of the most affordable EVs currently on the market, and the announcement has been welcomed by experts, who say the move will bring price parity between EVs and petrol vehicles a step closer.
You can compare Puma Gen-E deals here, or read on for everything you need to know about the new plug-in grant, and how it’s set to shake up the leasing market.
The new EV grant will focus on the more affordable end of the market
What is the EV grant?
The UK government relaunched the Electric Car Grant on 16 July 2025, backed by £650 million. The net result is that EVs with list prices of £37,000 or less will benefit from a discount of up to £3.750.
Unlike the previous plug-in car grant, brands must now meet a number of verified “Science-based targets” for overall sustainability, and will be ranked into Band 1 (£3,750 discount) or Band 2 (£1,500 discount).
What is the eligibility criteria to qualify?
To be eligible for both Band 1 and Band 2 grants, the vehicle must:
- Be a passenger vehicle
- Produce 0g/CO2 per km at the tailpipe
- Have a minimum battery range of 100 miles
- Have a minimum three-year or 60,000-mile warranty
- Meet minimum sustainability criteria
Which cars qualify for the grant?
The government has published its provisional list of vehicles that qualify for the plug-in grant. The new scheme is available to all manufacturers that meet qualifying criteria.
Band 1 cars (£3,750 discount)
Current eligible vehicles include:
- Ford Puma Gen E
- Ford E-Tourneo
Band 2 cars (£1,500 discount)
Current eligible vehicles include:
- Citroën ë-C3 and Citroën ë-C3 Aircross
- Citroën ë-C4 and Citroën ë-C4 X
- Citroën ë-C5 Aircross
- Citroën ë-Berlingo
- Nissan Ariya
- Nissan Micra
- Renault 4
- Renault 5
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
Which small vans qualify for the grant?
The maximum discount available for some small vans is £2,500. To be eligible for a grant, the vehicle must:
- be less than 2,500 kilograms (kg) gross vehicle weight
- have CO2 emissions of less than 50g/km
- be able to travel at least 96km (60 miles) without any emissions
The eligible vehicles are:
- Citroën e-Berlingo
- Dacia Spring Cargo
- Fiat e-Doblo
- Ford e-Transit Courier (trend)
- Ford e-Transit Courier (limited)
- Ford Transit Connect PHEV Short Wheel Base Van
- Ford Transit Connect PHEV Short Wheel Base FlexCab
- Maxus eDeliver 3 (short wheel base variants)
- Mercedes eCitan
- Nextem Orca
- Nissan Townstar
- Nissan Voltia
- Peugeot e-Partner
- Renault Kangoo E-Tech
- Renault Kangoo E-Tech (medium wheel base versions)
- Toyota Proace City Electric
- Vauxhall Combo-e
- Volkswagen Caddy Cargo eHybrid Panel Van
Compare electric van lease deals
Which large vans qualify for the grant?
The maximum discount available for some large vans is £5,000. To be eligible for a grant, the vehicle must:
- be between 2,500kg and 4,250kg gross vehicle weight
- have CO2 emissions of less than 50g/km
- be able to travel at least 96km (60 miles) without any emissions
The eligible vehicles are:
- BD Auto eTraffic
- BD e-Boxer
- BD e-Ducato
- BD e-Relay
- Citroën e-Dispatch
- Citroën e-Relay
- DFSK EC31
- DFSK EC35
- Farizon SV
- Fiat e-Ducato
- Fiat E-Scudo
- Ford E-Transit (Leader)
- Ford E-Transit (Trend)
- Ford E-Transit Custom (Limited)
- Ford E-Transit Custom (MS-RT)
- Ford E-Transit Custom (Sport)
- Ford E-Transit Custom (Trend)
- Ford E-Transit (Leader) Enhanced Range
- Ford E-Transit (Trend) Enhanced Range
- Ford Transit Connect PHEV Long Wheel Base Van
- Ford Transit Connect PHEV Long Wheel Base FlexCab
- Iveco eDaily
- LEVC VN5
- MAN eTGE
- Maxus eDeliver 3
- Maxus eDeliver 3 LWB Chassis Cab
- Maxus eDeliver 5
- Maxus eDeliver 7
- Maxus eDeliver 9
- Maxus eDeliver 9 MC L3 Chassis Cab
- Maxus eDeliver 9 LC L4 Chassis Cab
- Maxus E Terron 9 Luxury
- Maxus E Terron 9 Premium
- Maxus T90
- Mercedes-Benz eVito
- Mercedes-Benz eVito Premium
- Mercedes-Benz eVito Progressive
- Mercedes eSprinter
- Nissan Townstar Crew Van
- Nissan Townstar L2
- Peugeot e-Boxer
- Peugeot e-Expert
- Promod L City
- Renault Kangoo E-Tech (long wheel base and crew van versions)
- Renault Master E-Tech (panel and conversions)
- Renault Trafic E-Tech
- Renault Trucks Master ZE
- Toyota Proace Electric
- Vauxhall Movano
- Vauxhall Vivaro-e
- Volkswagen Caddy Cargo eHybrid Panel Van Maxi
- Volkswagen E-Transporter Kombi
- Volkswagen E-Transporter Panel Van
- Volkswagen ID. Buzz Cargo Commerce
- Volkswagen ID. Buzz Cargo Commerce Plus
Compare electric van lease deals
Why has the EV Grant returned?
It’s three years since the Conservative government pulled the plug on the plug-in car grant, but the new grant takes into account changes in the market over the last few years.
For starters, demand for new EVs hasn’t matched the target forecast, with the majority of new EVs going straight to the fleet industry rather than private individuals.
The new grant will also be based on a specific sustainability criteria, with two bands likely: Band one vehicles will be discounted by £3,750, while Band two vehicles will only receive £1,500.
How will the EV grant affect lease prices?
However you fund your vehicle, the EV Grant is set to be a good thing for prices. When it comes to leasing, the dealership or leasing firm will directly apply the discount – so there’s no faff or paperwork needed from lease customers themselves.
When it comes to searching for deals on Leasing.com, the savings will be directly applied to the advertised monthly and total costs, with us already seeing price drops on vehicles like the Renault Scenic E-Tech. The main benefits for lease customers include:
1. Lower monthly costs
The upfront discount directly reduces the capital sum on lease rates. For example, a £30,000 EV in Band 1 sees a reduced capital cost of £26,260, which allows for lower monthly lease instalments.
2. Salary sacrifice and fleet deals
The grant doesn’t just apply to personal deals, but for business leasing and salary sacrifice too – an extra boon for those seeking the most affordable and tax efficient company car options.
3. A knock-on effect for non-eligible vehicles
For more premium EVs that are often priced between £37,000 and £50,000, manufacturers may have to respond by lowering list prices, or offering attractive lease rates to compete with vehicles that are eligible for the grant. This could lead to lower lease prices, even on models that do not have the discount applied.
Leapmotor has charged ahead with an EV Grant of its own
So will the EV grant lead to a price war?
Quite possibly – we’re already seeing manufacturers respond. For example, Leapmotor – a Chinese brand unlikely to qualify for the discount – rolled our its own discounts to match the government offering: £1,500 off the T03 and a hefty £3,3750 on the C10 SUV. The C10 was the most popular vehicle on Leasing.com over the last few months.
Other Chinese marques are also responding in kind, with MG and GWM also offering their own “EV grants”. It’s likely others will follow soon, either by revising MSRP or offering dealer-specific incentives. This is likely to spark a price war that will benefit lease customers looking for affordable EVs.
Read more: Top EV myths busted
Leasing.com’s top tips for grabbing a great deal
Here’s a few top tips to bear in mind when searching for your next lease deal. With grant confirmations due by 11 August at the latest, leasing could get even more affordable very soon:
Act Fast: Manufacturers are submitting applications now — leasing rates are likely to drop for qualifying EVs over the coming weeks, with a full list available from August 11.
Shop Smart: Target Band 1 vehicles for full benefit— you could save up to £3,750 on your total lease cost.
Consider Alternatives: Even if Band 2, the £1,500 incentive combined with OEM deals could tilt leasing deals in your favour.
Watch the Market: A flurry of Chinese price-matching and OEM responsiveness is shaping a highly competitive leasing landscape — don’t delay.
