Breaking: Hyundai Kona Electric Becomes First Hyundai to Qualify for UK Electric Car Grant
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The Hyundai Kona Electric has made history as the first Hyundai model to qualify for the UK government's Electric Car Grant, with the announcement confirmed on 3rd February 2026. The compact electric SUV now benefits from a £1,500 discount under Band 2 of the scheme, bringing its starting price down to £33,500 and making it significantly more competitive in the crowded electric vehicle market.
Why Has the Kona Only Just Become Eligible?
Until now, no Hyundai electric vehicles qualified for the UK Electric Car Grant despite the scheme launching in July 2025. The primary barrier was Hyundai's lack of a verified Science Based Target (SBT) for carbon emissions reduction under the Paris Agreement.
The Electric Car Grant requires manufacturers to demonstrate commitment to environmental sustainability through certified emissions reduction targets. Whilst Hyundai has been offering electric vehicles for years, including the award-winning IONIQ range and the Kona Electric, administrative certification requirements prevented grant eligibility.
In response to this gap, Hyundai launched its own "Hyundai Electric Grant" in summer 2025, offering customers £1,500 off the Kona Electric, IONIQ 5, IONIQ 6, and IONIQ 9, plus £3,750 off the INSTER. This manufacturer-funded scheme ensured Hyundai remained competitive whilst working towards official grant qualification.
Ashley Andrew, President of Hyundai & Genesis UK, commented: "Kona Electric's eligibility for the Electric Car Grant ensures that customers have access to a more level playing field when it comes to choosing electric mobility. A lower retail price, attractive fleet proposition and lower Motability advance payment ensures that Kona Electric's mix of high specification, long-range abilities and affordability remains extremely attractive, regardless of how you choose to fund your vehicle."
How Much Does the Hyundai Kona Electric Cost Now?
With the £1,500 Electric Car Grant now applied, the Hyundai Kona Electric pricing structure becomes significantly more attractive:
Advance: £33,500 (was £35,000)
N Line: £37,000 (was £38,500)
N Line S: £39,400 (was £40,900)
Ultimate: £39,400 (was £40,900)
All models benefit from the full £1,500 discount under Band 2 of the Electric Car Grant scheme. The grant applies to all orders placed from 2nd February 2026 onwards and is automatically deducted at point of sale, meaning customers see the reduced price immediately without needing to apply separately.
For fleet customers, the grant translates to a £38 per month reduction on typical 6+35 month contracts with 8,000 miles per annum, bringing monthly costs down to £349 + VAT. Motability customers benefit from reduced advance payments of just £749.
What Are the Technical Specifications?
The Kona Electric delivers impressive specifications that justify its position as one of the UK's best-selling electric SUVs:
Performance and Range
65.4kWh battery capacity
Up to 319 miles WLTP range
150kW (201bhp) electric motor
255Nm of torque
0-62mph in 7.9 seconds
Top speed of 104mph
Charging Capabilities
11kW AC charging (10-100% in 6 hours 45 minutes)
102kW DC rapid charging (10-80% in 43 minutes)
CCS Type 2 charging connector
Vehicle-to-Load (V2L) capability for powering external devices
Design and Features
Compact SUV dimensions with elevated driving position
466-litre boot capacity
12.3-inch digital driver display
12.3-inch touchscreen infotainment system
Wireless Apple CarPlay and Android Auto
Heat pump for efficient climate control
Advanced driver assistance systems
How Does This Impact Salary Sacrifice Savings?
The addition of the £1,500 Electric Car Grant creates compelling opportunities for UK employees considering the Kona Electric through a company electric car scheme.
Combined Savings Example
For an employee in the 40% tax bracket leasing the Kona Electric Advance through The Electric Car Scheme:
Traditional Personal Lease:
Monthly cost: Approximately £480
With Electric Car Grant:
Reduced by £1,500 (approximately £42/month over 36 months)
Monthly cost: Approximately £438
With Salary Sacrifice + Grant:
Additional 20-50% savings through pre-tax salary deduction
Current 3% Benefit-in-Kind rate
Net monthly cost: Approximately £290-£350
Total savings: £130-£190 per month
Comprehensive Package Benefits
The Electric Car Scheme offers all-inclusive packages covering:
The Hyundai Kona Electric lease
Full maintenance and servicing
Breakdown cover
Comprehensive insurance add-on
Optional home charger installation
Access to The Charge Scheme for 20-50% savings on charging costs
What Makes the Kona Electric Competitive?
The Kona Electric's grant eligibility positions it strongly against established rivals in the compact electric SUV segment:
Range and Efficiency
At 319 miles, the Kona Electric offers segment-leading range that addresses range anxiety concerns. This compares favourably to:
MG ZS EV: 273 miles
Volkswagen ID.3: 264-348 miles (depending on variant)
Nissan Ariya: 250-329 miles (depending on variant)
Specification and Value
Hyundai's generous standard specification across all trim levels includes features typically reserved for higher-spec variants in competing models. The entry-level Advance includes:
Full LED lighting
17-inch alloy wheels
Heated front seats
Heated steering wheel
Rear parking sensors and camera
Smart cruise control with stop/go
Lane keeping assist
Proven Reliability
Hyundai's reputation for reliability, backed by a comprehensive 5-year unlimited mileage warranty, provides peace of mind for first-time electric car buyers.
How Does This Affect the UK EV Market?
The Kona Electric's grant eligibility represents a significant development in the UK's electric vehicle landscape. As the first Hyundai model to qualify, it opens the door for other models in the manufacturer's extensive EV lineup to potentially follow suit.
Current Grant-Eligible Vehicles
The Kona Electric joins approximately 40 other models eligible under the Electric Car Grant scheme, with vehicles split between two bands:
Band 1 (£3,750 grant):
Nissan Leaf (from £32,249)
Ford Puma Gen-E
Ford E-Tourneo Courier
Citroën ë-C5 Aircross
Band 2 (£1,500 grant):
Hyundai Kona Electric (from £33,500)
Plus 35+ additional models
Hyundai's Own Grant Scheme Continues
Importantly, Hyundai confirms its self-funded Electric Grant will continue until 31st March 2026 for models not yet eligible for the government scheme:
INSTER: £3,750 discount
IONIQ 5 (including 5 N): £1,500 discount
IONIQ 6 (including 6 N): £1,500 discount
IONIQ 9: £1,500 discount
This dual approach ensures all Hyundai electric vehicles remain competitively priced whilst the manufacturer works to secure government grant eligibility for its entire electric lineup.
What About Fleet and Business Customers?
The Kona Electric has established a strong presence in the UK fleet market, and the grant eligibility significantly enhances its business proposition.
Fleet Cost Benefits
Monthly lease costs reduced by £38 on typical contracts
Starting from £349 + VAT per month (6+35 month, 8,000 miles p.a.)
Lower Benefit-in-Kind tax at just 3% for 2025/26
Reduced National Insurance contributions for employers
Ideal for Company Car Drivers
For company car drivers, the combination of low BiK rates and the Electric Car Grant creates compelling total cost of ownership:
Example Calculation (40% Taxpayer):
P11D value: £35,000
BiK rate: 3%
Annual BiK tax: £420
Monthly BiK cost: £35
This compares extremely favourably to equivalent petrol or diesel company cars, which face BiK rates up to 37%.
Is the Kona Electric Good for Salary Sacrifice?
The Hyundai Kona Electric presents several advantages for UK employees considering an electric car salary sacrifice scheme:
Practical Versatility
The compact SUV format offers the elevated driving position and practicality UK drivers prefer, with sufficient space for families whilst remaining manageable in urban environments.
Real-World Range
The 319-mile range eliminates daily charging anxiety for most drivers, whose average journey is just 20 miles. Weekend trips and longer journeys become feasible without careful planning.
Comprehensive Warranty
Hyundai's 5-year unlimited mileage warranty (8 years/100,000 miles on the battery) provides peace of mind throughout a typical 36-month salary sacrifice term.
Charging Flexibility
The combination of home charging (10-100% in under 7 hours), rapid charging capability, and Vehicle-to-Load functionality offers maximum flexibility for different lifestyles.
Strong Residual Values
Hyundai's established presence in the electric vehicle market supports strong residual values, reducing monthly costs through salary sacrifice arrangements.
How to Access the Kona Electric Through Salary Sacrifice
UK employees interested in the Hyundai Kona Electric through a company electric car scheme should:
Verify their employer offers an electric car salary sacrifice scheme
Use The Electric Car Scheme's salary sacrifice calculator to estimate potential savings
Compare the Kona Electric against other grant-eligible vehicles
Consider adding home charger installation for maximum convenience
Explore The Charge Scheme for additional 20-50% savings on charging costs
For employers not yet offering an electric car scheme, the combination of government grants, low BiK rates, and strong employee demand makes this an ideal time to introduce this valuable benefit whilst incurring zero net cost to the business.
What's Next for Hyundai and the Grant?
Industry observers anticipate that Hyundai's other electric models may follow the Kona's path to grant eligibility. With Science Based Target certification now achieved, models including the IONIQ 5, IONIQ 6, and the new IONIQ 9 could potentially qualify in future updates to the scheme.
The INSTER, Hyundai's smallest and most affordable electric car, currently benefits from the manufacturer's own £3,750 grant. If this model achieves Band 1 government grant eligibility in future, it would become one of the most affordable new electric cars available in the UK.
For now, Hyundai's dual approach of offering both government grants (where eligible) and manufacturer grants (for models not yet qualifying) ensures its entire electric lineup remains competitively priced and accessible to UK drivers.
The Bigger Picture: Accessible Electric Mobility
The Hyundai Kona Electric's grant eligibility represents another step towards making electric vehicles accessible and affordable for mainstream UK drivers. With electric cars offering significantly lower running costs than petrol alternatives, zero road tax until 2030, and minimal maintenance requirements, the financial case for switching continues to strengthen.
When combined with government grants and salary sacrifice schemes, electric vehicles like the Kona Electric become genuinely competitive with traditional cars on total cost of ownership. The 319-mile range and 43-minute rapid charging demonstrate how modern EVs have evolved to meet real-world needs.
As charging infrastructure continues to expand – supported by the government's £200m investment – and manufacturers achieve grant eligibility for more models, the remaining barriers to EV adoption are rapidly diminishing. The Kona Electric's journey from manufacturer-funded grants to official government scheme eligibility illustrates this positive trajectory.
Ready to discover how much you could save on the Hyundai Kona Electric through salary sacrifice? Calculate your savings with The Electric Car Scheme today and join thousands of UK drivers who have already made the switch to cleaner, more affordable electric motoring.
For employers looking to offer this valuable benefit, book a demo to discover how The Electric Car Scheme's comprehensive salary sacrifice programme can support your team's journey to net zero whilst strengthening your employee value proposition.
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Last updated: 06.02.26
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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