The Fiat 500e has become one of the UK’s cheapest cars after being approved for the top band of the Government’s Electric Car Grant, which provides a discount of either £1500 or £3750 off the price of a new electric car.
The new £3750 discount on the 500e cuts its starting price to £17,245.
It is now cheaper than the forthcoming 500 Hybrid by £1750.
The only cheaper cars currently on sale are the Kia Picanto, Dacia Sandero, Leapmotor T03, and Dacia Spring, with prices starting at £17,095, £14,765, £12,995, and £11,995, respectively.
Fiat will welcome the significant cut in the 500e’s starting price, as the company has so far struggled to find a market for the model, with fewer than 1000 examples registered in the UK last year.
Autocar understands that Fiat’s sales for the first half of 2026 were down by 39% compared with the same period last year, to 3748 cars.
Fiat must improve the sales performance of the 500e to comply with the UK’s Zero Emissions Vehicle mandate, which requires that every one in three cars sold by a firm must be electric this year.
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Alternatively, they must sell a sufficient number of low-emissions combustion-engined cars to convert savings in emissions into ‘credits’ that can be traded for de-facto EV sales.
Manufacturers that do not meet their targets face penalties of £12,000 per combustion-engined car sold over their allowed quota, making it essential for Fiat to increase sales of the 500e.
Most of Fiat’s UK sales this year have been mild-hybrids.
Ramping up sales of the 500e will give Fiat flexibility to sell its most popular cars, such as the mild-hybrid 600 crossover, and allow the brand to expand its range with new offerings such as the pure-petrol, manual-gearbox Grande Panda.
The 500e is due to be updated next year to make it more competitive with the new wave of small European EVs, such as the Renault Twingo.
It is earmarked for a revised battery pack with a greater energy density, which should improve its range from the current 118 miles in Urban Range form or 199 miles in standard range guise.
The Abarth 500e hot hatch now also qualifies for the £3750 grant, cutting its price to £24,245.