Breaking: Volkswagen, Skoda and Cupra Launch £1,500 'Grant Guarantee' for Electric Cars
Source: Volkswagen Press
The Volkswagen Group has made a major move in the electric car discount war, launching £1,500 'Grant Guarantee' schemes across its three key brands. The Volkswagen Group has decided it doesn't want to wait around and see which of its EVs are eligible for the government's new Electric Car Grant scheme, and has cut £1,500 from the price of selected electric cars from Volkswagen, Skoda and Cupra.
This development makes Volkswagen Group the largest automotive manufacturer to offer immediate electric car discounts, following similar moves by Hyundai, Kia, and other manufacturers responding to the government's £650 million Electric Car Grant announcement.
What Models Are Included?
The 'Grant Guarantee' covers popular electric vehicles across all three brands:
Volkswagen
For Volkswagen, the electric cars that fall under the German firm's new £1,500 'Grant Guarantee' include the ID.3 in Pure, Pro and Pro trim levels, along with the ID.4 in Pure and Pro - essentially excluding the GTX from both.
New Prices:
Volkswagen ID.3: From £29,360 (was £30,860)
Volkswagen ID.4: From £38,090 (was £39,590)
Skoda
As for Skoda, its grant covers the Elroq and Enyaq, in SE, SE L, Edition and SportLine trim. With the grant the Elroq will cost from £30,010 and the Enyaq £38,190.
On Škoda's side, the initiative covers 11 models across the Elroq and Enyaq line-ups. For the Elroq, these include the SE 50, SE L 60, SE L 85, Edition 60, Edition 85, SportLine 60 and SportLine 85 derivatives. On the Enyaq, the grant covers the SE L 60, Edition 60, Edition 85 and SportLine 85 models.
New Prices:
Skoda Elroq: From £30,010 (was £31,510)
Skoda Enyaq: From £38,190 (was £39,690)
Cupra
Cupra's grant is on the Born hatchback on V1, V2 and V3 trim levels - lowering the base price to £34,190.
Cupra customers can make use of the Grant Guarantee on the Born V1 and V2 with the 59 and 79kWh batteries and the Born V3 with the 59, 77 and 79kWh batteries.
New Prices:
Cupra Born: From £34,190 (was £35,690)
How the Grant Guarantee Works
Volkswagen, Skoda and Cupra all confirmed that they will honour the £1,500 saving even if Government's grant is not awarded, but said that customers won't receive both manufacturer and Government grants.
The scheme provides price certainty during the uncertainty around the government's Electric Car Grant eligibility criteria. It's smart because it guarantees £1,500 off whether or not your chosen EV ends up qualifying for the Government support. That's particularly valuable when the rules are still being finalised.
Timeline and Eligibility
To be eligible, customers have to order a car between August 1 and August 31 and take delivery with the new "75" plate from September 1.
The offer is available for retail customers only and applies to both cash purchases and Personal Contract Plan (PCP) finance arrangements.
Why Volkswagen Group Made This Move
Rod McLeod, director of Volkswagen UK, commented on the introduction of the scheme, stating, "We welcomed the Government's announcement of its Electric Car Grant and wanted to make sure customers could start benefiting from lower-cost electric motoring as quickly as possible. We have already seen an uplift in enquiries since the Government's grant was announced, which is great news for Volkswagen's electrification plans".
For VW Group – already the largest player in the UK car market – it's a strategically significant move that still positions it ahead of official policy delivery.
The decision reflects the complex government approval process, where manufacturers must meet strict sustainability criteria and Science-Based Targets before their vehicles can qualify for official grants.
Impact on Electric Car Salary Sacrifice
This development creates excellent opportunities for company electric car scheme participants. The £1,500 manufacturer discount reduces the vehicle's base price before salary sacrifice calculations are applied.
For example, the Volkswagen ID.3 now starting at £29,360 becomes highly competitive through electric car salary sacrifice schemes, with employees saving an additional 20-50% through pre-tax salary deductions and the current 3% Benefit-in-Kind rate.
Broader Market Context
Volkswagen Group's decision comes amid an unprecedented wave of EV discounting across the industry. Manufacturers have already slashed prices by around £4 billion in 2024 alone to meet zero‑emission mandates and attract buyers in a softening market.
The move follows similar discount announcements from:
Hyundai: £3,750 off Inster, £1,500 off other models
Kia: £3,750 off EV3 Air
Volvo: £1,500 off EX30
MG: £1,500 off MG4 EV and MG5 EV
What This Means for EV Buyers
For many buyers, price remains the decisive factor in choosing an EV. Now, with guaranteed discounts and tempting finance options on popular models, the choice to go electric in 2025 looks more attractive than ever.
The Volkswagen Group's scale and market position make this a significant development. This is massive news. The Volkswagen Group is easily the largest player in the UK car market, and even though others acted faster, VW Group's scale gives this move serious weight.
For drivers considering electric car schemes, these guaranteed discounts combined with salary sacrifice benefits create compelling value propositions across popular family-friendly models.
Getting Your Discount
To benefit from the Volkswagen Group 'Grant Guarantee':
Order your chosen eligible model between 1-31 August 2025
Take delivery from 1 September 2025 with the new '75' plate
The £1,500 discount applies automatically at point of sale
Can be combined with electric car salary sacrifice schemes for maximum savings
With the uncertainty around government grant eligibility and the proven benefits of The Electric Car Scheme's salary sacrifice programme, this guaranteed discount provides immediate value for employees looking to switch to sustainable electric vehicles.
The combination of manufacturer discounts, salary sacrifice savings, and low Benefit-in-Kind rates makes August 2025 an optimal time for UK drivers to access premium electric cars at unprecedented affordability levels.
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Last updated: 04/08/2025
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