- Following the UK government’s announcement of the Electric Car Grant (ECG) last week, in which the government will subsidise up to £3,750 off the price of a new eligible electric car, a rising number of manufacturers have responded quickly with their own in-house car grant schemes.
- Whilst the £37,000 limit for the ECG is a clear guide, the numerous other criteria have left manufacturers uncertain on whether their EVs will qualify – and how soon this could be confirmed.
- Leapmotor was the first retailer in the UK to launch its own separate ‘grant’ in response – but now several manufacturers have followed, with more likely to join.
EV price war ignites amid grant uncertainty
Leapmotor stood out as the first OEM to launch its own separate ‘LEAP-GRANT’ programme in response to the official ECG. That comes after Future of Roads Minister Lilian Greenwood suggested that most EVs manufactured within China would be ineligible for the grant, owing to specific environmental criteria needed to qualify for the official grant. Leapmotor is now directly offering £1,500 off its T03 city car, making it the cheapest five-door EV on the market, and £3,750 off its C10 electric SUV. Leapmotor’s announcement was quickly followed by GWM, launching a £3,750 discount on its ORA 03 EV.
The need for manufacturers to implement such schemes might become a necessity in the short term to keep EV sales high, as early signs suggest consumers are holding off or cancelling EV orders, hoping to re-order at a later date and obtain a price reduction through the scheme. MG Motor UK’s Commercial Director, Guy Pigounakis, told Fleet News that the firm has already seen customers cancelling EV orders in response to the ECG announcement. The manufacturer has already applied through the ECG portal, but Pigounakis suggests it would be a ‘miracle’ for the firm to receive a confirmation or denial within a three month window. In response, MG is now offering £1,500 ‘grants’ against its MG4 and MGS5 models.
With that in mind, it’s no longer just manufacturers with EVs built in China jumping the gun ahead of the official scheme. Hyundai has now also launched its own grant scheme, offering a £3,750 discount on its compact INSTER, with a blanket £1,500 discount across the rest of its EV range. Alfa Romeo is also granting a £1,500 discount off its only EV, the Junior, whilst Volvo has launched a £1,500 in-house discount off its EX30.
Over the next few weeks, we’re likely to see more manufacturers to launch discount schemes separate to the official ECG. However, we may soon get confirmation of the first EVs to be eligible for the official government grant.
