Major car brand launches new electric vehicle grant to meet ‘challenging’ ZEV mandate targets
One of the UK’s most popular automotive brands has slashed thousands of pounds off the price of its electric cars in response to strict EV targets.
Fiat UK has expressed confidence in meeting this year’s stricter Zero Emission Vehicle (ZEV) mandate targets with its new initiative.
Through its E-Grant scheme, which offers customers up to £4,220 off electric vehicles, Fiat hopes to help motorists make the transition away from petrol and diesel vehicles.
The Italian carmaker’s expanded electric vehicle lineup, including the new Grande Panda, is expected to help meet the challenging 28 per cent electric vehicle sales requirement for 2025.
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The manufacturer’s customer incentive programme, which launched at the start of this year, aims to make electric vehicles more accessible to British buyers.
The initiative comes as carmakers face increasing pressure to meet government-mandated electric vehicle sales targets.
The E-Grant scheme, which came into force on January 1, was introduced in response to the government’s ZEV mandate regulations that became law in 2024.
Under these regulations, carmakers must ensure a set percentage of their new vehicle sales are electric, with the first year’s target peaking at 22 per cent.
The mandate will continue to rise annually until 2030, when the sale of new petrol and diesel cars will be banned entirely.
The scheme offers significant savings, with eligible customers able to receive up to £4,220 off the price of an electric Fiat.
Fiat UK’s managing director Giuseppe Cava, who was appointed earlier this month, acknowledged initial concerns about meeting the mandate requirements.
He said: “The mandate is a subject I fear because when it was announced we only had one electric model on offer, the 500e.
“We’ve done several initiatives. When the Government dropped the electric vehicle grants, 12 months later we introduced the Fiat E-Grant scheme,” he told the PA news agency.
The scheme was first offered on the 500e before expanding to include the 600e, with Cava noting: “It’s certainly a challenging target, but we have a lot more offerings now.”
Fiat’s electric vehicle range has now expanded to include five different models, incorporating both Fiat and Abarth offerings.
The new Fiat Grande Panda is expected to be “one of the biggest contributors” to meeting the mandate targets, according to Cava.
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With the E-Grant reduction applied, the Fiat 500e is now one of Britain’s most affordable electric cars, starting at £21,995.
In 2024, the Italian brand sold 14,253 vehicles in the UK for a market share of 0.73 per cent. Its sales beat other manufacturers like Jeep, Polestar, Smart and Subaru.