From April 1, 2025, all newly registered electric cars face additional taxes, greatly increasing their costs over a typical company car lifecycle.

The first year rate of vehicle excise duty (VED) is set at £10 for zero-emissions-in use (0g/km) vehicles. From the second tax payment onwards, they will now pay the standard rate of £195. That’s an increase of £595 over a typical four-year cycle.

For models priced over £40,000 (including options), the VED position is even worse. These cars will now also attract the ‘expensive car supplement’, which imposes an additional annual fee of £425 for five years, beginning from the second year of registration, on top of the standard rate. 

As a result, electric cars that cost more than £40,000 will cost an additional £620 per year in road tax, or a total of £1,870 over the first four years. 

On top of this, new benefit-in-kind tax bands take effect from April. Electric models, which previously attracted a 2% charge, now face a 3% rate – pushing up costs for company car drivers.

We’ve compiled a list of 10 electric models which slip under the £40,000 price point but still offer a good balance of specification, range and driveability.

1 – Kia EV3

Model: Air 81.4kWh

Range: 345 miles (WLTP)

Price: £36,005 (OTR)

Running cost: 35.8ppm (4yr/80k)

The EV3 is Kia’s latest and most impressive model to date. It’s a compact SUV that offers comparable interior space to a much larger one. It has a great level of standard kit, good efficiency and a large battery for a comfortable real-world range of 300 miles.

2 – Vauxhall Grandland Electric

Model: GS 73kWh

Range: 323 miles (WLTP)

Price: £37,605 (OTR)

Running cost: 34.3ppm (4yr/80k)

Using an all-new Stellantis platform, the latest Grandland is more high-tech and better to drive than its predecessor. The electric powertrain isn’t the most efficient on the market, but it still promises a range of more than 300 miles if you drive carefully.

3 – Skoda Elroq

Model: Edition 85 77kWh

Range: 360 miles (WLTP)

Price: £38,650 (OTR)

Running cost: 38.9ppm (4yr/80k)

Skoda has been on a winning streak with a run of impressive new models over the past 12 months. The Elroq enters the compact SUV segment with competitive pricing and, crucially, an excellent range.

4 – MG 4

Model: Trophy Extended Range 77kWh

Range: 323 miles (WLTP)

Price: £36,495 (OTR)

Running cost: 38.9ppm (4yr/80k)

MG was a ahead of the pack in launching the 4 as an affordable long-range electric car for the masses. The addition of the Extended Range variant brings a range of more than 300 miles but keeps the price comfortably below the £40,000 threshold.

5 – Renault Scenic E-Tech

Model: Techno Comfort Range 60kWh

Range: 261 miles (WLTP)

Price: £37,495 (OTR)

Running cost: 35.1ppm (4yr/80k)

The Scenic is one of the best new cars on the road and is available here in Comfort Range guise. Sadly the more impressive Long Range variant costs more than £40,000, but for those that can hope with a lower range model this Scenic is still an excellent choice.

6 – VW ID3

Model: Pro S Match

Range: 345 miles (WLTP)

Price: £39,940 (OTR)

Running cost: 40.6ppm (4yr/80k)

The ID 3 is the oldest model on this list but it still packs a mighty punch. After a facelift, last year, the electric hatchback continues to impress. It has a great range, impressive efficiency, fast charging and plenty of space on board.

7 – Hyundai Kona Electric

Model: Ultimate 65kWh

Range: 319 miles (WLTP)

Price: £39,400 (OTR)

Running cost: 44ppm (4yr/80k)

As our Best Compact SUV at the 2025 Fleet News Awards, it’s no surprise that the Kona appears in this list. A recent price cut means the top-spec Ultimate model with the longest range is available for less than £40,000.

8 – Xpeng G6

Model: Standard Range 66kWh

Range: 270 miles (WLTP)

Price: £39,900 (OTR)

Running cost: TBC

Xpeng is a fresh entrant in the UK market and its debut model, the G6, is certainly worthy of consideration. It’s spacious, well-equipped and good to drive. A premium interior and potent 258PS electric motor enhance the overall package.

9 – Volvo EX30

Model: Single Motor Extended Range Plus 64kWh

Range: 295 miles (WLTP)

Price: £39,850 (OTR)

Running cost: 41ppm (4yr/80k)

Volvo’s smallest car sits somewhere between the hatchback and SUV segments with a contemporary design and minimalist interior. The lack of switchgear can frustrate but the EX30 is well-equipped and provides rapid acceleration.

10 – Abarth 600e

Model: Scorpionissima 54kWh

Range 207 miles (WLTP)

Price: £39,875 (OTR)

Running cost: 39.9ppm (4yr/80k)

A wildcard choice to round off our list. The Abarth 600e is a proper hot-hatch with an electric powertrain. It doesn’t have a great range and the ride is firm, but it’s an absolute hoot to drive compared to anything else on this list.