Auto manufacturer MG following suit of Chinese competitors by providing discounts on electric vehicles, prompted by uncertainty surrounding government grants
The UK Government's new Electric Car Grant, worth £650 million, is set to accelerate the switch to electric vehicles, but it seems that Chinese-built models are not part of the scheme. This is due to the strict environmental standards the grant requires, particularly in battery cell manufacturing and vehicle assembly.
Currently, the most affordable new EV on sale in Britain is the Leapmotor T03. However, none of Leapmotor's Chinese-assembled vehicles are likely to meet the required production standards under the new UK Government grant scheme. Reports suggest that Leapmotor's vehicles may not qualify for the grant due to environmental concerns.
Similarly, GWM UK's ORA 03 and C10 SUV models have been discounted, aiming to compete with other popular EVs like the Hyundai Kona Electric and Peugeot e-3008. The ORA 03 now starts at £21,245 on the road, thanks to a £3,750 'Green Grant' introduced by GWM UK. The larger C10 SUV is being discounted by the full £3,750, bringing its price down to £28,745.
MG Motor UK has also adjusted its prices, following suit with GWM and Leapmotor. The MG4 model will now cost £25,495, while the MG5 EV will be available for £24,995. MG Motor UK's Commercial Director, Guy Pigounakis, has commented on the move, expressing the brand's commitment to increasing the sale of EVs.
Leapmotor's UK distributor, Stellantis, claims the cuts are designed to "avoid delays" caused by the Government's grant approval process. The Leapmotor C10 SUV has been reduced by £1,500 to £14,495, undercutting the Dacia Spring by £500. Leapmotor's compact T03 city car has also been reduced by £1,500 to £14,495.
The Electric Car Grant offers up to £3,750 off the price of a new battery-electric car with an RRP below £37,000. The grant requires manufacturers to hold verified Science Based Targets and demonstrate carbon emissions from production below defined thresholds, with a particular focus on the carbon intensity of battery cell manufacturing and vehicle assembly. If these emissions are too high, vehicles do not qualify for the grant.
The new grant scheme is aimed at accelerating the switch to electric vehicles. However, it seems that many Chinese-made EVs are excluded due to their production emissions not meeting the strict environmental standards set by the UK government’s grant scheme. The government has not released a list confirming eligible models, but the sustainability criteria effectively exclude many Chinese-made EVs.
In summary, while some Chinese EVs may meet price requirements, they are excluded because their production emissions do not meet the strict environmental standards set by the UK government’s grant scheme. The grant aims to encourage manufacturers to produce EVs with lower carbon emissions, promoting a greener and more sustainable future for the UK.
- Despite the affordability of the Leapmotor T03, it is unlikely to meet the production standards required for the UK Government's Electric Car Grant due to environmental concerns.
- The ORA 03 and C10 SUV models from GWM UK have been discounted to compete with other EVs like the Hyundai Kona Electric and Peugeot e-3008, but they may not be eligible for the grant due to the strict environmental standards.
- MG Motor UK has adjusted its prices for the MG4 and MG5 EV models to increase their sale, but like other Chinese-made EVs, they may not qualify for the UK Government's Electric Car Grant due to high production emissions.
- Many Chinese-made EVs are excluded from the UK Government's Electric Car Grant due to their production emissions not meeting the strict environmental standards set by the grant scheme, effectively hindering a greener and more sustainable future for the UK.
