Ford Becomes First to Secure Maximum £3,750 Electric Car Grant for Puma Gen-E
Image Source: Ford Press
Ford Leads the Way: First to Achieve Maximum Grant
Ford's achievement in securing the full £3,750 electric car grant demonstrates the company's commitment to sustainability and environmental responsibility. The two qualifying models - the Ford Puma Gen-E and Ford E-Tourneo Courier - met all the stringent criteria established by the Department for Transport.
"We welcome the Government's decision to accelerate the transition to electric mobility and are proud that Ford's commitment to sustainability has been recognised with the full EV grant," said Lisa Brankin, Ford UK chair and managing director. This recognition places Ford at the forefront of the UK's transition to electric vehicles.
Understanding the New Electric Car Grant Scheme
The Government's £650 million Electric Car Grant launched in July 2025 represents a significant investment in accelerating electric vehicle adoption. This scheme differs markedly from previous grant programmes by incorporating strict environmental and sustainability criteria.
Grant Eligibility Requirements
To qualify for the electric car grant, vehicles must meet comprehensive criteria:
Basic Requirements:
Recommended retail price of £37,000 or less
Minimum battery range of 100 miles (160km)
Three-year or 60,000-mile vehicle warranty
Eight-year or 100,000-mile battery warranty
Environmental Standards:
Manufacturer must commit to verified science-based targets (SBT)
Embodied carbon scores below specified thresholds
Compliance with sustainability manufacturing practices
Transport Minister Lilian Greenwood indicated that vehicles assembled in China are unlikely to qualify, emphasising the scheme's focus on sustainable manufacturing practices throughout the supply chain.
Two-Tier Grant Structure
The scheme operates on a two-tier system based on environmental credentials:
Band One (£3,750): Reserved for the greenest vehicles meeting the highest sustainability standards Band Two (£1,500): For qualifying vehicles that meet basic requirements but with less stringent environmental credentials
Currently, only Ford's two models qualify for the maximum grant, while four additional models receive the lower amount.
Current Qualifying Models
As applications continue to be processed, six models have qualified for electric car grants:
Full £3,750 Grant Recipients
Ford Puma Gen-E: Available through salary sacrifice schemes with additional tax savings
Ford E-Tourneo Courier: Ideal for families seeking electric MPV solutions
£1,500 Grant Recipients
Peugeot E-308: Compact electric family car
Peugeot E-408: Stylish electric crossover
DS 3: Premium compact electric vehicle
DS No4: Luxury electric crossover
The Department for Transport expects more models to qualify in coming weeks as manufacturers' applications undergo assessment.
Maximising Savings: Combining Grants with Salary Sacrifice
The real opportunity for UK drivers lies in combining the electric car grant with electric car salary sacrifice schemes. This combination can deliver exceptional value:
Example: Ford Puma Gen-E Savings Calculation
Traditional Purchase:
List price: £35,000
Less electric car grant: £3,750
Net cost: £31,250
With Salary Sacrifice:
3% Benefit-in-Kind rate for 2025/26
20-50% savings on lease costs
Tax and National Insurance savings
Maintenance and insurance included
A higher-rate taxpayer could potentially save an additional £8,000-£12,000 over a three-year period through The Electric Car Scheme, making the effective cost significantly lower than traditional financing.
Industry Response and Future Outlook
Manufacturer Reactions
The introduction of strict sustainability criteria has prompted varied responses across the automotive industry. While Ford has embraced the requirements, other manufacturers are adapting their strategies.
MG has introduced its own £1,500 grant for private buyers of the MG4 EV, while BYD announced enhanced servicing packages following uncertainty about grant eligibility. These responses demonstrate how the grant scheme is driving broader industry changes beyond direct government support.
Expert Analysis
RAC head of policy Simon Williams commented: "It's great to see details of the first two models qualifying for the full £3,750 electric car grant. This represents a significant saving for drivers which we hope further stimulates demand and encourages other manufacturers to follow suit."
This sentiment reflects broader industry optimism about the scheme's potential to accelerate electric vehicle adoption while maintaining high environmental standards.
Strategic Considerations for Employers and Employees
For Employers
Companies considering company electric car schemes should evaluate how grant-eligible vehicles can enhance their employee benefits packages. The combination of government grants and salary sacrifice creates compelling value propositions for attracting and retaining talent while supporting sustainability initiatives.
For Employees
Individuals exploring electric vehicle options should consider the total cost of ownership, including:
Initial grant savings
Salary sacrifice tax benefits
Reduced charging costs compared to petrol/diesel
Lower maintenance requirements
Potential parking and congestion charge exemptions
Practical Next Steps for Potential EV Adopters
Immediate Actions
Identify Qualifying Vehicles: Review current and upcoming models that meet grant criteria
Calculate Total Savings: Consider grant plus salary sacrifice benefits
Evaluate Charging Needs: Assess home charging requirements and public charging access
Consult Employers: Discuss electric car scheme options with HR departments
Long-term Planning
The electric car grant, combined with salary sacrifice schemes, creates unprecedented opportunities for UK drivers to transition to electric vehicles affordably. As the scheme expands and more manufacturers meet sustainability requirements, these opportunities will only increase.
A New Era of Accessible Electric Mobility
Ford's achievement in securing the maximum electric car grant marks the beginning of a new era in UK electric vehicle adoption. By meeting the Government's stringent sustainability requirements, Ford has demonstrated that environmental responsibility and commercial success can align effectively.
For UK drivers, the combination of government grants and electric car salary sacrifice creates an unprecedented opportunity to transition to electric vehicles with significant financial benefits. As more manufacturers meet the scheme's requirements, these opportunities will expand, accelerating the UK's journey toward sustainable transportation.
The success of Ford's Puma Gen-E and E-Tourneo Courier in achieving full grant status sets a benchmark for the industry, encouraging other manufacturers to invest in sustainable manufacturing practices while delivering compelling electric vehicles for UK consumers.
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Last updated: 29/08/2025
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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