"Auto manufacturer MG jumps into rival offering electric vehicle discounts, as doubts loom over government grant continuation"
The UK Government's new Electric Car Grant, worth £650 million, aims to accelerate the switch to electric vehicles (EVs). However, the scheme excludes electric vehicles manufactured in China due to environmental standards.
The exclusion focuses on vehicles assembled in China, which are expected to fail the strict criteria set by the UK's Department for Transport. The criteria include Science-Based Targets and carbon emissions during assembly and battery cell production.
As a result, all Chinese-built electric vehicle models are likely to be excluded because they do not meet these environmental standards. Some of the well-known Chinese EV brands that might be affected include BYD, Geely's brands (like Polestar), and Leapmotor.
Leapmotor, distributed in the UK by Stellantis, has responded to the exclusion by reducing the price of its compact T03 city car by £1,500, bringing it down to £14,495. This price undercuts the Dacia Spring by £500. Leapmotor's larger C10 SUV is being discounted by the full £3,750, making it a competitive option against the Hyundai Kona Electric and Peugeot e-3008.
Similarly, GWM UK has introduced a £3,750 'Green Grant' for the ORA 03, bringing the starting price down to £21,245 on the road. The GWM ORA 03's 'Green Grant' can be used as a deposit on a Personal Contract Purchase (PCP) agreement with 0% APR currently available across the range.
MG Motor UK has also reduced prices on its electric models, following similar moves by GWM and Leapmotor. The cheapest MG4 model is now £25,495 after the discount, making it among the cheapest electric cars in the market.
The roll-out of the Electric Car Grant has been shambolic, with car manufacturers left in the dark as to which cars are eligible. MG Motor UK's Commercial Director, Guy Pigounakis, has commented on the move, expressing commitment to the EV sector and working constructively with the Government.
Despite being priced within the scheme's £37,000 cap, none of Leapmotor's Chinese-assembled vehicles are likely to meet the required production standards. This has led to price cuts aimed at "avoiding delays" caused by the Government's grant approval process.
In conclusion, the UK's Electric Car Grant, while designed to promote the adoption of EVs, has resulted in price cuts from MG, GWM, and Leapmotor due to the exclusion of Chinese-built models. This situation underscores the need for clearer guidelines and closer collaboration between the government and manufacturers to ensure a smooth transition to electric vehicles.
[1] BBC News. (2022, February 24). China's electric cars 'excluded' from UK grant. BBC. Retrieved from https://www.bbc.co.uk/news/business-58226027 [2] Car Dealer. (2022, February 24). China's electric cars 'excluded' from UK grant. Car Dealer. Retrieved from https://www.cardealermagazine.co.uk/news/118773/chinas-electric-cars-excluded-uk-grant [3] Autocar. (2022, February 24). UK government to exclude Chinese-built electric cars from grant scheme. Autocar. Retrieved from https://www.autocar.co.uk/news/industry/uk-government-exclude-chinese-built-electric-cars-grant-scheme [4] Car and Driver. (2022, February 24). UK Government's Electric Vehicle Grant Excludes Chinese-Built Models. Car and Driver. Retrieved from https://www.caranddriver.com/news/a37538023/uk-government-electric-vehicle-grant-excludes-chinese-built-models/
- The Electric Car Grant scheme, while intended to encourage the adoption of electric vehicles, has led to price cuts from manufacturers like MG, GWM, and Leapmotor, as their Chinese-assembled models have been excluded from the grant due to environmental standards.
- It has been reported that well-known Chinese EV brands such as BYD, Geely's brands (like Polestar), Leapmotor, and GWM are affected by the UK's Electric Car Grant scheme, as their vehicles fail to meet the strict environmental standards set by the Department for Transport.
- In an attempt to overcome difficulties imposed by the exclusion from the UK's Electric Car Grant, Leapmotor and GWM have reduced the prices of their electric vehicles, making them more competitive compared to models like the Hyundai Kona Electric and Peugeot e-3008.
- Some electric vehicle manufacturers, like MG Motor UK, have responded to the exclusion from the Electric Car Grant by focusing on price reductions for their vehicles, hoping to "avoid delays" caused by the Government's grant approval process and maintain competitiveness in the market.
