Hyundai Slashes EV Prices to Counter UK Electric Car Grant Delays: What This Means for UK Drivers
Source: Hyundai Newsroom
Hyundai has become the latest major manufacturer to slash electric vehicle prices across its entire EV range, responding to uncertainty surrounding the UK government's new Electric Car Grant scheme. The Korean brand's decisive action highlights growing industry frustration with the complex eligibility requirements that have left consumers waiting for clarity on which vehicles will qualify for official support.
Understanding the UK's Electric Car Grant Scheme
The government launched an Electric Car Grant on 15 July 2025 to support the transition to zero emission vehicles and incentivise sustainable automotive manufacturing. The £650 million scheme offers two funding tiers:
Band 1: £3,750 for the most sustainably produced vehicles
Band 2: £1,500 for cars meeting some environmental criteria
However, the scheme's complexity lies in its strict eligibility requirements. Manufacturer eligibility requires Science-Based Targets validation with 42% emissions reduction by 2030 and net-zero commitments by 2050, ensuring only genuinely sustainable carmakers qualify.
The grant applies exclusively to new electric vehicles priced under £37,000, with funding available until financial year 2028 to 2029. Crucially, manufacturers can begin applying for the grant on July 16, on a first-come, first-served basis, with buyers who purchase vehicles before official approval of their car models not eligible for retroactive grants.
Hyundai's Strategic Response
Frustrated by the uncertainty, Hyundai launched its own "Electric Grant" programme on 25 July 2025. Aligning with the official bands, Hyundai has cut the price of the baby Inster by £3,750, which means it now kicks off from under £20,000, while the rest of the brand's electric line-up – the Kona Electric, Ioniq 5, Ioniq 6 and Ioniq 9 – all drop by £1,500.
The savings structure directly mirrors the government's proposed grant amounts:
Hyundai Inster
Discount: £3,750
New starting price: Under £20,000
Additional summer bonus: £500 extra off until 31 August 2025
Other Hyundai EVs
All receive £1,500 reductions:
Hyundai Ioniq 6
Hyundai Ioniq 5 N
Hyundai Ioniq 9
Ashley Andrew, president of Hyundai and Genesis UK, said: "As the electric vehicle landscape continues to evolve, it is important that customers have complete clarity, choice and compelling value when making the switch to electric".
Why Hyundai Made This Move
Several factors drove Hyundai's decision to implement immediate price cuts:
Market Uncertainty
The Korean brand has moved amid uncertainty caused by the Government's announcement of its new grant, which has led to consumers holding back on ordering EVs until it becomes clearer which will – or won't – be eligible.
Competitive Pressure
Hyundai isn't alone in this strategy. The manufacturer follows similar moves by Alfa Romeo, Kia, Leapmotor and MG in recent days to shore up demand.
Clear Value Proposition
With the government's new electric car grant scheme causing confusion, Hyundai has cut through the noise with a clear, no-nonsense offer. No eligibility criteria, no postcode lottery – just money off at the point of sale.
Industry-Wide Price War
Hyundai's move is part of a broader industry trend, with multiple manufacturers introducing their own grant schemes:
MG Motor UK
MG Motor UK has announced that with immediate effect, the company will offer all private buyers of the MG4 EV and the MGS5 EV a grant of £1,500.
Great Wall Motor (GWM)
GWM UK said it is matching the UK government EV grant with its own £3,750 'Green Grant' for retail customers. Available across the entire GWM ORA 03 range, the manufacturer's grant brings the entry-level ORA 03 PURE to just £21,245 OTR.
Leapmotor
The Chinese brand was among the first to announce cuts of around 10% to its all-electric car prices in the UK market, ahead of the government's scheme.
Alfa Romeo
Alfa Romeo is also offering a £1,500 discount on its Junior Elettrica model.
When Do These Price Cuts Take Effect?
Unlike the government's complex application process, manufacturer grants offer immediate clarity:
Hyundai Electric Grant: Available immediately at all UK dealerships
Summer bonus: Additional £500 off Inster and Kona Electric until 31 August 2025
Government scheme: Vehicle eligibility confirmations expected from 11 August 2025
The Hyundai Electric Grant is available immediately across Hyundai UK's national Retailer network, applied to retail, Hyundai Affinity or Contract Hire purchases.
Impact on Electric Car Pricing
These price cuts represent significant value for UK drivers:
Real-World Savings
The Hyundai Inster, with its £3,750 discount, becomes the UK's most affordable high-quality electric car. For many buyers, this represents the difference between electric vehicle ownership being accessible or remaining out of reach.
Market Positioning
What's significant is that it's gone for the largest discount on the Inster, which means it's going to fall to below £20,000 in base-level trim, making it competitive with traditional petrol vehicles.
Combining Savings: Electric Car Salary Sacrifice
For UK employees, combining manufacturer grants with electric car salary sacrifice schemes creates unprecedented affordability. With salary sacrifice offering 20-50% savings and the current 3% Benefit-in-Kind rate for 2025/26, drivers can maximise their electric vehicle value.
Example: Hyundai Inster Through Salary Sacrifice
Original price: £23,755 (estimated before discount)
Hyundai Electric Grant: -£3,750
New retail price: Under £20,000
Salary sacrifice savings: 20-50% additional reduction
Final monthly cost: Potentially under £200 per month
The Electric Car Scheme offers comprehensive Hyundai electric vehicle options through salary sacrifice, combining manufacturer discounts with tax-efficient leasing.
Government Grant: Complex Eligibility
While manufacturer grants offer immediate clarity, the official Electric Car Grant faces challenges:
Science-Based Targets Requirement
To qualify, manufacturers must have a Science-Based Target (SBT) on greenhouse gas emissions. This requirement has created uncertainty, with major groups like Volkswagen, Renault, and Ford signed up to the SBTi but have not confirmed eligibility for specific electric models.
Chinese Manufacturers Excluded
Chinese brands are unlikely to be eligible for the grant, prompting brands like MG, Leapmotor, and GWM to introduce their own immediate discount schemes.
Limited Funding
The £650 million total funding for the EV grant would be enough to subsidise around 173,000 electric car purchases at the maximum grant amount of £3,750 per vehicle, raising questions about long-term sustainability.
What This Means for UK Drivers
Immediate Benefits
Clarity: No waiting for government eligibility confirmations
Accessibility: Hyundai's grants apply to all purchase types, including salary sacrifice
Value: Combined savings with other schemes maximise affordability
Long-Term Considerations
This is a practical step that addresses the cost barrier many drivers still face, and has the potential to open up EV access to more people across the UK.
However, drivers should consider:
Manufacturer grants may have time limits
Government grants, once confirmed, could stack with manufacturer discounts
Salary sacrifice schemes provide long-term tax advantages
Looking Ahead: EV Market Transformation
Hyundai's price cuts signal a broader shift in the UK electric vehicle market. With more than 380,000 new EVs registered last year, the UK is now Europe's largest electric car market, manufacturers are competing aggressively for market share.
Supporting Infrastructure
The government has announced complementary measures including £25 million of funding to deliver cross-pavement charging channels, £30 million grant funding to install chargepoints at depots for vans, coaches and HGVs, supporting the transition beyond just vehicle purchases.
Charging Solutions
For those considering electric vehicle ownership, understanding EV charging options and home charging costs remains crucial for total cost of ownership calculations.
A Strategic Shift
Hyundai's decision to slash EV prices represents more than just competitive positioning—it's a strategic response to regulatory uncertainty that benefits UK consumers immediately. By offering clear, immediate discounts that mirror the government's proposed grant structure, Hyundai has eliminated buyer hesitation while the official scheme works through its complex eligibility process.
For UK drivers considering electric vehicle ownership, this development creates a unique opportunity. Combined with salary sacrifice electric car schemes offering 20-50% additional savings, manufacturer grants make electric vehicle ownership more accessible than ever.
As the EV market continues evolving, expect more manufacturers to follow Hyundai's lead in providing immediate customer value rather than waiting for government clarity. For consumers, this competition ultimately means better deals, more choice, and accelerated transition to sustainable transport.
Ready to explore electric vehicle options through salary sacrifice? The Electric Car Scheme offers comprehensive access to Hyundai's discounted EV range with additional tax-efficient savings.
Are you an employer?
BOOK A DEMOAre you an employee?
SEE AVAILABLE CARSECS GUIDES AND ADVICE
Ready to Go Electric? Your Guides and Tools to a Smooth Switch
-
How the Scheme WorksFind out how salary sacrifice can work for you or your business.
-
The Charge SchemeSave 20-50% on all charging costs through salary sacrifice - at home, the office, or in public..
-
Complete Employer ProtectionAll employers and drivers are protected from day 1.
-
Used Electric CarsDiscover the most affordable way to drive electric. Cars delivered in 14 days.
You might also like…
Last updated: 21/07/2025
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.
Copyright and Image Usage: All images used on this website are either licensed for commercial use or used with express permission from the copyright holders, in compliance with UK and EU copyright law. We are committed to respecting intellectual property rights and maintaining full compliance with applicable regulations. If you have any questions or concerns regarding image usage or copyright matters, please contact us at marketing@electriccarscheme.com and we will address them promptly.
