Automobile manufacturers slashing prices on electric vehicles, fretting about potential exclusion from government subsidies - securing discounts of up to £3,750
UK Government Introduces Electric Car Grant, Chinese Brands Offer Competitive Incentives
The UK government has launched a new Electric Car Grant (ECG) on July 16, 2025, aimed at driving sales of electric vehicles (EVs) by offering up to £3,750 discount on new electric cars priced under £37,000, contingent on verified sustainability standards.
The ECG, part of the UK government's wider strategy to combat climate change, operates on a two-tier system based on 'sustainability criteria'. Only those manufacturers meeting these criteria qualify for either the full £3,750 (Band 1) or a smaller £1,500 grant (Band 2).
However, some Chinese EV makers may be excluded from the ECG due to emissions-based rules. In response, several Chinese brands have introduced their own grants to match or exceed the UK government's Electric Car Grant.
Leapmotor, a Chinese brand, has launched its own "Leap Grant" offering savings of up to £3,750 on its electric vehicles, starting from July 18, 2025. The grant is available immediately at the point of sale. For example, the Leapmotor T03 gets a £1,500 discount, and the Leapmotor C10 gets a £3,750 discount.
Other Chinese manufacturers such as BYD, Omoda, and Jaecoo are also excluded from the UK government's £3,750 grant because their vehicles do not meet the strict sustainability criteria. These brands have introduced their own competitive discount programs to keep their EVs affordable in the UK market.
In contrast, European brands, while not reported to offer separate grants, benefit from the government scheme as many of their EVs meet the UK sustainability criteria and qualify directly.
Fiat has also joined the fray with the introduction of the 'Fiat E-Grant', offering a grant built into the On-The-Road (OTR) prices of the Fiat 500e, 500e Convertible, 600e, and Abarth 500e models. The Fiat E-Grant is available for both retail and fleet customers, making the 600e and Abarth 500e available from £29,975.
Meanwhile, Great Wall Motors (GWM) offers a Green Car Grant of £3,750 which can be used towards its Ora 03 model. The MG brand also offers an Electric Car Grant of £1,500 off select EV models. Alfa Romeo has introduced the 'Alfa Romeo EV Grant' offering £1,500 off the OTR price on all Junior Elettrica models.
The exact criteria for determining which EVs will meet the sustainability criteria and be eligible for the grant remain unclear. It is expected that Chinese brands will continue to offer their own financial incentives to remain competitive in the UK market.
| Origin | Brand/Manufacturer | Grant Offer Details | Reason for Own Grant | |-----------|--------------------|------------------------------------------------|---------------------------------------------------------| | Chinese | Leapmotor | Up to £3,750 discount immediately on models | Addresses lag in UK government scheme and exclusion | | Chinese | BYD, Omoda, Jaecoo | Alternative discount programs (details vary) | Not eligible for UK government grant due to sustainability | | European | Various (unspecified) | No separate grants reported, benefit from govt scheme | Many meet UK sustainability criteria, thus qualify directly |
- The UK government's Electric Car Grant has prompted Chinese brands, such as Leapmotor, BYD, Omoda, and Jaecoo, to introduce their own grants, offering savings of up to £3,750, to remain competitive in the UK market.
- European brands, like Fiat, benefit from the UK government's Electric Car Grant as many of their electric vehicles meet the UK's sustainability criteria and qualify directly for the grant.
- Leapmotor has launched its "Leap Grant", offering immediate savings of up to £3,750 at the point of sale on its electric vehicles, such as the Leapmotor T03 and C10.
- Some Chinese manufacturers, such as BYD, Omoda, and Jaecoo, may be excluded from the UK government's Electric Car Grant due to their vehicles not meeting the strict sustainability criteria, leading them to introduce alternative discount programs.
- Other car manufacturers, including Great Wall Motors, MG, and Alfa Romeo, offer grants, such as the Green Car Grant, Electric Car Grant, and Alfa Romeo EV Grant, respectively, to provide financial incentives for their electric vehicles in the UK market.
