Volkswagen ID.3 Models Now Qualify for £1,500 Grant, Making the Cheapest Model £29,360

Volkswagen's ID.3 electric car is now eligible for the UK government's £1,500 grant, making the cheapest model £29,360. The sportier GTX models are excluded due to being too pricey. Other all-electric ID cars are expected to follow in the coming weeks. The Cupra Born and Skoda's Elroq and Enyaq are also eligible for the grant.

The UK government has expanded its electric car grant scheme, adding several new models to the list, including the Volkswagen ID.3. The ID.3 is now eligible for a £1,500 discount, reducing the price of the cheapest model to £29,360. This move is part of a larger £650 million investment aimed at encouraging the switch from petrol and diesel cars to electric vehicles (EVs) [1].

The grant scheme, which was recently broadened, now covers 22 vehicles, with prices reduced by up to £1,500. Models from Volkswagen, Peugeot, and Cupra have been added to the list. The new eligible cars include the Cupra Born, Volkswagen ID.3, Peugeot e-208, Peugeot e-2008, and Peugeot e-Rifter. The cost of these cars, after the discount, ranges from £20,245 to £37,460 [1].

The government's initiative comes at a time when the number of electric cars registered in the first quarter of 2025 was 43% higher than the same period last year. DVLA data showed that more than 120,000 zero-emissions cars were registered between January and March this year [1].

However, the shift to electric vehicles is not without criticism. Some argue that the mining of precious metals for batteries is environmentally damaging. Despite these concerns, the government is also investing in electric car charging infrastructure to reduce carbon emissions [1].

Tesla, another prominent player in the EV market, has been facing declining sales in the UK and has responded by offering discounts of up to 40% to UK car leasing companies. Leasing a Tesla Model 3 for 36 months is now available for as low as £252 plus VAT, a significant drop from previous prices [2].

The new electric car grant scheme is expected to run until the 2028/29 financial year, by which time the government hopes 52% of all new cars sold in the UK will be fully-electric. However, without knowing the exact eligibility requirements, there could be a slump in sales of electric models. Some companies have introduced temporary discounts to maintain demand for electric cars [3].

References:
[1] https://www.the-independent.com/news/uk/home-news/electric-cars-uk-government-grant-volkswagen-peugeot-cupra-b2808569.html
[2] https://www.fxleaders.com/news/2025/08/18/tsla-tesla-fights-uk-sales-crash-with-deep-leasing-discounts/
[3] https://www.whatcar.com/news/every-eligible-car-for-the-electric-car-grant/n27940