The UK’s automotive market is buzzing with the recent announcement of a new Electric Car Grant (ECG), promising discounts of either £1500 or £3750 on a range of electric vehicles priced under £37,000.
While exciting, the rollout has hit a snag: the government has only just opened applications for manufacturers to receive the grant, leaving buyers in limbo as they wait for a list of qualifying models.
This uncertainty has had a swift impact. According to MG UK commercial director Guy Pigounakis, orders for new EVs priced below the £37,000 threshold “quite literally stopped” within 24 hours of the grant’s announcement.
In a bold move to counteract this stall, MG has introduced a £1500 discount on its MG4 and S5 EV models. This proactive step comes before official confirmation that these models will even qualify for the government grant, highlighting the urgency felt by the manufacturer.
MG’s decision to offer this discount early isn’t without risk. To qualify for the ECG, manufacturers must be signed up to the Science Based Targets Initiative for carbon emissions reduction – a criterion that neither MG nor its parent company, SAIC, currently meet.
Adding another layer of complexity, the level of grant funding an EV receives is tied to the “cleanliness” of the power grid in the country where the car and its battery cells are produced. This effectively limits the potential grant amount for any Chinese-made vehicle, as China’s grid is not yet considered “clean.”
Despite these hurdles, several other Chinese brands have also jumped ahead of the curve, introducing their own early discounts to gain an edge over European competitors. Leapmotor was the first, slashing prices on its C10 and T03 models by £3750. This move made the T03 the UK’s most affordable EV at retail. GWM quickly followed suit, offering the same £3750 discount on its Ora 03.
