Plug-In Car Grant – The Removal of Categories 2 & 3

A big blow to the growth of Electric and Plug-In vehicles announced yesterday.

The UK government has announced changes to the Plug-In car grant that will take effect from the 9th November 2018. The changes announced yesterday will mean that the grant rate for Category 1 vehicles will move from £4,500 to £3,500 and Category 2 and 3 vehicles will no longer be eligible for the grant. The current grant has been in place for the last 7 years and has supported the purchase of over 160,000 new cars.

Cars that currently sit in Category One include:

  • BMW i3 and i3s
  • BYD e6
  • Citroen CZero
  • Hyundai IONIQ Electric
  • Hyundai KONA Electric
  • Jaguar I-PACE
  • Kia Soul EV
  • Mercedes-Benz B-Class Electric Drive
  • Nissan e-NV200 (5-seater and 7-seater)
  • Nissan LEAF
  • Peugeot iON
  • Renault ZOE
  • Smart EQ fortwo
  • Smart EQ forfour
  • Tesla Model S
  • Tesla Model X
  • Toyota Mirai
  • Volkswagen e-up!
  • Volkswagen e-Golf

*These vehicles have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any CO2 emissions at all. Some of these vehicles are subject to change due to the introduction WLTP.

What does this mean for your Fleet

The information so far states that cars ordered before the 9th of November will benefit from the current level of grants available, with the government currently honouring orders processed.

Vehicles that will be affected by the removal of the categories include:

Category Two Cars

  • Audi A3 e-tron
  • BMW 225xe
  • BMW 330e
  • BMW 530e
  • Hyundai IONIQ PHEV
  • Kia Niro PHEV
  • Kia Optima PHEV
  • Mercedes-Benz C350 e (with 17 inch rear wheels)
  • Mercedes-Benz E350 e SE
  • Mitsubishi Outlander PHEV (except Commercial)
  • Toyota Prius Plug-in
  • Volkswagen Golf GTE
  • Volkswagen Passat GTE
  • Volvo S90 Twin Engine
  • Volvo V60 D5 Twin Engine
  • Volvo V60 D6 Twin Engine
  • Volvo V90 Twin Engine
  • Volvo XC60 Twin Engine

*These vehicles have CO2 emissions of less than 50g/km and can travel at least 16km (10 miles) without any CO2 emissions at all.

Category Three Cars

  • Mercedes-Benz E350 e AMG Line
  • MINI Countryman PHEV

*These vehicles have CO2 emissions of 50 to 75g/km and can travel at least 32km (20 miles) without any CO2 emissions at all

If you’re looking to add a new Electric or Hybrid vehicle to your fleet we would recommend reviewing potential options now to make the most of the current grants available. Our Fleet Specialists are here to assist, feel free to get in touch today.

Posted on Posted in Articles

Recent Articles


We’re hiring! Are you our next Sales Manager?

Do you have a passion for sales? Do you enjoy managing a team of enthusiastic account managers and executives?  If you can answer yes to these questions and are ready to take your career to the next level – Join us! We are looking to recruit a high achieving Sales Manager to drive performance and […]


Click and collect: Safety procedure for handing over vehicles with social distancing in mind

During these challenging times, industries, and retailers, including the automotive industry needs to evaluate the ways in which they operate their day to day business. On one hand they need to continue to trade and stay viable, on the other hand however, and more importantly, they have the obligation to make an extra effort to […]


Returning to work? Keep your employees safe

After 10 weeks of full lockdown, we are now experiencing the first steps to get back to a new normal. While the government encourages employees to return to work, there are no proper provisions for them to get there safely. In the first few days, public transport – particularly in London, one of the UK’s […]


Visit Archive