The Kia EV4 hatchback has qualified for the upper tier of the UK government’s Electric Car Grant (ECG), making it cheaper than the smaller EV3.

The upgrade to the full Band 1 grant of £3750, up from the previous Band 2 grant of £1500, means the EV4 in entry-level Air trim now starts at £30,995. It offers 201bhp and a range of 273 miles between charges.

That's £560 less than the equivalent EV3, despite the EV4 being a larger car – and despite the two models being closely related in their technical make-up, sharing batteries and motors.

The EV4 is now cheaper because the EV3 still qualifies only for the lower Band 2 discount of £1500.

That's because it's built in South Korea, whereas the EV4 is built in Slovakia: the ECG takes into account the emissions from the car's supply chain, and shipping the EV3 over from east Asia raises those significantly. 

The fastback version of the EV4, which is likewise imported to the UK from South Korea, doesn't receive the ECG whatsoever, being too expensive at £40,495.

The upgrade in the EV4 hatchback’s banding brings its pricing back into line with key rivals that had already qualified for the full £3750 discount.

These include the Mini Countryman E (priced from £29,555), Citroën ë-C5 Aircross Long Range (from £32,565) and Renault Scenic E-Tech (from £33,245). 

Meanwhile, the smaller Kia EV2 Long Range – which is assembled in Slovakia, using a European-made battery – is expected to be upgraded to the full £3750 grant in due course, cutting its price from £27,995 to £24,245.

Kia UK already offers its own discount of £3750 on the long-range EV2, but that will be replaced by the ECG if this model variant receives approval for Band 1 status.