The Hyundai Kona Electric has become the first Hyundai model eligible for the UK Government’s Electric Car Grant, offering buyers a £1,500 discount off the on-the-road price from orders placed on or after 2 February 2026. This Band 2 grant approval reduces the entry-level Advance model’s price to £33,500, making it competitive against rivals like the Vauxhall Mokka Electric while retaining its 319-mile range and generous specifications. For EV buyers in the UK, this lowers the barrier to entry for a proven family SUV with strong efficiency.
Background: Hyundai’s Push into UK EV Incentives
Hyundai Motor UK launched its own Electric Grant in July 2025, providing up to £3,750 off models like the Inster and £1,500 off IONIQ 5, IONIQ 6, and others until 31 March 2026. The government’s Electric Car Grant, part of a £1.3 billion scheme, requires manufacturers to commit to Science-Based Targets (SBT) for emissions reductions aligned with the Paris Agreement. Hyundai’s recent SBT approval unlocked eligibility for the Kona Electric across all trims—Advance, N Line, N Line S, and Ultimate—as none exceed the £42,000 price cap for higher variants.
Before this, Hyundai relied on manufacturer discounts, but the official grant levels the field against competitors like Vauxhall and Nissan that qualified earlier. The Kona Electric holds a strong fleet market position, now leasing from £349 + VAT on a 6+35 month contract (8,000 miles/year), a £38/month improvement. Motability customers see advance payments drop to £749. This milestone positions Hyundai as a late but strategic entrant in the UK’s incentivized EV market, where nearly 50 models now qualify.
Key Specifications
| Specification | Details |
|---|---|
| Powertrain | 215 bhp front-mounted electric motor, 65.4 kWh battery |
| 0-62 mph | 7.8 seconds |
| Range (WLTP) | Up to 319 miles |
| Starting Price (Advance, post-grant) | £33,500 OTR |
| Top Price (Ultimate, post-grant) | Under £42,000 (eligible) |
| Grant Eligibility | £1,500 Band 2, all trims, orders from 02/02/2026 |
| Fleet Lease | From £349 + VAT (6+35, 8k miles) |
| Motability Advance | £749 |
Performance and Efficiency Analysis
The Kona Electric’s 65.4 kWh battery and 215 bhp motor deliver a balanced 7.8-second 0-62 mph sprint, prioritizing efficiency over outright speed. Its WLTP range of 319 miles suits long-distance family use, outperforming many compact EV SUVs in real-world tests. Reviewers note its comfort and ease in urban driving, though handling lacks sharpness in corners. High trim levels include advanced features like generous infotainment and safety tech, enhancing value post-grant.
Fleet operators benefit most, with the lease rate reflecting strong residual values and low running costs. The grant stacks with Hyundai’s ongoing promotions, but details on exact OTR pricing per trim remain unconfirmed beyond the Advance starter. Efficiency stands at competitive levels, supporting Hyundai’s zero-emission push amid the Zero Emission Vehicle mandate.
Market Impact and Sustainability Requirements
Hyundai’s SBT commitment was the key hurdle; now cleared, it opens doors for models like a cheaper Inster or IONIQ 5 variant to hit Band 1 (£3,750). The scheme favors brands showing emissions progress, with Band 1 reserved for top eco-performers like the Nissan Leaf or Renault 5. Unanswered questions include the grant duration beyond March 2026 and whether the sister Kia Niro EV will follow suit, sharing platforms. Critics question whether manufacturer discounts masked higher base prices, but the official grant validates Kona’s competitiveness.
The UK’s £1.3bn fund, plus £30m for fleets and £8m for NHS chargers, accelerates adoption. Fuel duty freeze saves drivers £50-60 yearly, complementing EV incentives.
Comparison with Competitors
| Model | Starting Price (post-grant) | Range (WLTP) | Power | Grant Band |
|---|---|---|---|---|
| Hyundai Kona Electric (Advance) | £33,500 | 319 miles | 215 bhp | Band 2 (£1,500) |
| Vauxhall Mokka Electric | ~£31,500 | ~250 miles (est.) | 134 bhp | Band 2 (£1,500) |
| Volkswagen ID.3 | Under £37,000 | Up to 345 miles | 201 bhp (base) | Band 2 (£1,500) |
| Nissan Leaf (Band 1) | Eligible | Up to 280 miles | 214 bhp (top) | Band 1 (£3,750) |
The Kona edges the Mokka on range and power for just £2,000 more, while matching ID.3 value but trailing Leaf’s higher grant.
Verdict
The Kona Electric’s grant eligibility solidifies it as a top compact EV SUV pick for families, fleets, and Motability users seeking a 319-mile range at £33,500. It suits practical buyers prioritizing space, efficiency, and savings over Band 1 ultra-greens, though rivals offer sharper dynamics or bigger discounts. Watch for Hyundai’s next approvals to challenge leaders.
