Drivers in the UK just got a welcome nudge toward greener roads. A £650 million government grant scheme launched last week is offering motorists up to £3,750 off the price of a new electric car—but there’s a twist.

To qualify, the EV must have a list price below £37,000, and the final discount depends on how sustainable the manufacturer’s production practices are. Cars fall into two bands:

• 
  Band 1 (full £3,750 discount)
• Band 2 (up to £1,500 discount)

But there’s already “chaos and confusion,” as car dealers report a flood of inquiries with very little official information to offer buyers. Big names like Tesla, BMW, Mercedes-Benz, and Jaguar are out of the running—they don’t currently sell EVs under £37,000 in the UK.

Chinese-assembled vehicles are excluded due to warranty and sustainability restrictions, but Chinese manufacturers like MG, GWM, and Leapmotor have introduced their own matching discounts.

So, what are the smartest options for drivers looking to save money and go electric right now? Here are five of the best electric cars that qualify for the new grant.

1. Best for Long Commutes

Renault Scenic E-Tech Electric Techno Long Range — £36,995
With a real-world range of 300+ miles and rapid charging capabilities (15% to 80% in just 37 minutes), this is a standout for those who regularly rack up motorway miles. Its heat pump system preserves battery life and the 12-inch Google-powered infotainment screen comes with Waze and Amazon Music built-in.

Pros: Excellent range for price
Cons: Lacks driving excitement

Renault Scenic E-Tech

2. Best for Families

Vauxhall Grandland Electric — £36,455
Spacious, practical, and tech-equipped, the Grandland Electric offers comfort for growing families. It includes Apple CarPlay, lane keep assist, and adaptive cruise control, all wrapped in a solid, no-nonsense SUV body.

Pros: Huge boot space (550L)
Cons: Feels a bit sluggish on the road

Vauxhall

3. Best Value Pick

Citroën E-C3 — £22,095
A fun-sized, urban-focused EV that doesn’t skimp on essentials. With a 199-mile range, heated front seats, and active lane departure warning, the E-C3 punches above its price point. The 44kWh battery charges from 20% to 80% in 26 minutes at a fast charger.

Pros: Budget-friendly and stylish
Cons: Interior materials feel cheap

Citroën

4. Best Performance Option

Alpine A290 — £33,500
This one’s for the petrolheads-turned-green. The Alpine A290, built on the Renault 5 platform, delivers thrilling performance with 220hp, 0-62mph in 6.4 seconds, and Formula 1-inspired styling.

Pros: Hot hatch feel, engaging handling
Cons: Renault 5 offers similar fun for less

Alpine (car)

5. Best Style Statement

Mini Cooper SE — £26,905
Looking good while saving the planet? The electric Mini Cooper SE brings iconic design with a leather-free interior, panoramic sunroof, and recycled materials. A full charge takes just 30 minutes (10% to 80%).

Pros: Stylish, fun to drive
Cons: Not the best value for money

Mini (marque)

Read This Before You Buy

If you’re planning to upgrade trim levels or add options, be careful: a few hundred pounds extra could push you over the £37,000 limit—and disqualify you from the grant altogether.

And while this grant makes new EVs more accessible, don’t overlook second-hand electric cars, which may still offer better long-term value due to heavy depreciation Many drivers are rushing to take advantage of the grant, but limited model availability and unclear guidelines are causing frustration at dealerships. Experts recommend acting quickly before production slots fill up or policy changes occur. With EV adoption on the rise, this could be one of the last chances to go electric with a major government discount.
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After months of mystery and speculation, Elon Musk has finally pulled the curtain back on Tesla’s much-hyped cheaper electric vehicle. And in a surprising twist, it’s not a new car at all.

“It’s just a Model Y,” Musk said flatly during Tesla’s Q2 earnings call this week. “Let the cat out of the bag there.”

That “cat” was expected to be Tesla’s long-rumored “Model 2”, a $25,000 compact EV that would disrupt the market and open up a new chapter in affordable electric mobility. Instead, Musk confirmed the upcoming vehicle is simply a more affordable version of the existing Model Y — the company’s global best-seller.

So, What Exactly Is Tesla’s “Cheaper EV”?

Tesla began initial production of the cheaper Model Y variant in June 2025, with mass production expected in the second half of the year, according to the company’s earnings release.

The new variant is not a revolutionary redesign, but rather a cost-reduced trim of the same Model Y we already know. It’s expected to feature cheaper materials, potentially a smaller battery, and scaled-back interiors — think cloth seats, fewer software features, and no frills.

“The desire to buy the car is very high. Just people don’t have enough money in their bank account,” Musk said. “So the more affordable we can make the car, the better.”

Tesla’s Lars Moravy, Vice President of Engineering, said that volume production won’t ramp up meaningfully until late Q4, noting the company will keep pushing current models to avoid complexity during Q3 — especially as the $7,500 EV tax credit is set to expire after September 30.

How Much Cheaper Will It Be?

Right now, the base Model Y starts at $44,990 (before incentives). Industry watchers believe the cheaper variant could land closer to $35,000, making it one of Tesla’s most accessible vehicles to date.

That price point could allow Tesla to unlock an entirely new customer base—but whether it will be enough to reignite growth remains to be seen.

Why Tesla Needs This EV Now More Than Ever

Tesla’s recent performance shows a clear loss of momentum. The company has struggled with:

• Declining deliveries of core models like the Model 3 and Model Y
• Underwhelming performance of its Cybertruck, with sales dropping 50% to just 4,300 units last quarter
• Slowing EV demand growth in the U.S. and abroad
• The looming expiration of the federal EV tax credit

Unlike competitors like Toyota, Volkswagen, or General Motors—who offer broad vehicle lineups across multiple price points—Tesla remains highly dependent on two models: the Model 3 and Model Y.

Without a compelling, lower-cost offering, Tesla risks being boxed out of a price-sensitive market that is now crowded with well-equipped alternatives from BYD, Hyundai, and even Ford.

Will This “Cheaper” Model Y Be Enough?

Musk’s confirmation squashes hopes for a groundbreaking new Tesla hatchback or a uniquely small, urban EV. While it may disappoint fans expecting innovation, it may prove a smart, pragmatic strategy to optimize existing production lines without incurring massive R&D or manufacturing costs.

Tesla has done this before — launching a stripped-down Model 3 variant in Mexico and a Model Y L with a third row in China earlier this year. This upcoming Model Y variant, rumored internally as Project E41, appears to be a continuation of that strategy.

Still, analysts remain cautious. A cheaper car might boost short-term sales, but can it solve Tesla’s bigger problems—from global competition to political controversy surrounding its CEO?

The Bottom Line

Tesla’s cheaper EV is not a new Tesla, it’s just a more accessible Model Y. And while that may seem underwhelming, it could be just what the company needs to survive a turbulent phase in the EV industry.

The question is, will this move help Tesla reclaim its dominance — or is it simply a temporary patch on deeper structural issues?
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General Motors (GM), the largest U.S. automaker by market share, has faced a significant setback as Donald Trump’s tariffs continue to hurt its bottom line. The company announced on Tuesday that the 25% tariffs on foreign-made vehicles and parts, imposed in early April, reduced its operating income by a staggering $1.1 billion in the second quarter of 2025. GM is bracing for even more pain in the coming months, forecasting a $4 billion to $5 billion total impact from these tariffs for the year.

The Financial Fallout

In its second-quarter earnings report, GM revealed that core profit fell 32% to $3 billion compared to the same period last year. The company also reported a nearly 2% decline in revenue, which dropped to about $47 billion. Shares took a hit, falling 3% in premarket trading.

The tariff situation is only expected to worsen in the third quarter of 2025, prompting GM to adjust its full-year core profit forecast. The automaker now predicts an adjusted core profit between $10 billion and $12.5 billion—down from its previous guidance. However, Mary Barra, GM’s CEO, remains hopeful that the company can mitigate at least 30% of the financial damage by improving its internal processes and supply chain efficiency.

Global Investments to Combat Tariffs

In response to these challenges, GM has set its sights on long-term solutions. The company announced plans to invest $4 billion in three U.S. auto plants in Michigan, Kansas, and Tennessee, with the goal of reducing its tariff exposure. These manufacturing upgrades are slated to come online in 18 months, and GM is hopeful that they will eventually reduce the impact of tariffs, especially on foreign-made vehicle imports.

GM’s efforts are backed by the company’s $888 million investment in its Tonawanda, New York, plant, which will support its next-generation V-8 engine. These investments are part of GM’s broader strategy to position itself for a profitable future despite the ongoing trade headwinds.

🇺🇸 The Impact on American Workers

The impact of these tariffs extends beyond GM’s bottom line. The U.S. automotive manufacturing industry employs nearly 1 million workers, with GM employing about 162,000 people globally. As the largest auto manufacturer in the U.S., GM’s struggles under the weight of tariffs highlight broader concerns about the future of American manufacturing in a post-trade war economy.

While GM’s efforts to weather the storm are commendable, the auto industry as a whole is also facing the highest average tariff rates since the Great Depression, with tariffs now sitting at 18.7%. This is impacting not just GM but other automakers like Stellantis, which reported a $350 million loss from tariffs in the second half of 2025.

The Bigger Picture: A Costly Trade War

GM is not alone in facing the consequences of Trump’s trade policies. Other companies across various industries are dealing with the ripple effects, from inflation to increased costs for consumers. U.S. inflation rose to 2.7% in June 2025, partially due to these tariffs. GM, however, remains committed to adjusting its strategy, with Barra focusing on adapting to new trade and tax policies, and a rapidly evolving tech landscape.

Despite these challenges, GM’s sales in the U.S. market—its largest profit center—rose by 7%, and the company continues to maintain strong pricing on its pickup trucks and SUVs. The automaker even returned to a small profit in China, reversing the losses it faced there just a year ago.

Can GM Overcome These Trade Headwinds?

The global auto industry is undergoing a massive shift, with companies like GM investing heavily in electric vehicles (EVs) and autonomous technology. However, the tariff crisis is proving to be a major obstacle, especially for manufacturers like GM who rely on imports of foreign-made parts. The Brookings Institution has warned that while the impact of tariffs on U.S. auto manufacturing is still unclear, it has the potential to be net negative for the industry.

Despite the setbacks, GM’s long-term investments in U.S. manufacturing and its ongoing efforts to adapt to the changing global trade landscape could eventually turn the tide. However, for now, tariffs remain a significant challenge, and it remains to be seen whether GM can weather this storm without further financial strain.

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