UK EV GRANTS WELCOMED BUT THE DEVIL IS IN THE DETAIL

Complex criteria will determine which cars qualify for £3750 subsidy

- NICK GIBBS

The UK government has reintroduced grants for new electric cars, offering discounts of up to £3750 – but there remains uncertainty over how the scheme will work, and most Chinese-built EVs could be excluded altogether.

The new Electric Car Grant (ECG) arrives as a way of incentivising sales of EVs as demand weakens while mandated emissions targets continue to rise.

Backed by £650 million of government funding, the ECG will apply to certain new EVs priced at or below £37,000 (although higher trim levels can exceed that figure and still qualify if an entry model with the same battery starts below it).

The move is a win for the UK automotive industry after months of fierce lobbying to help ease the burden of hitting the strict EV sales targets imposed by the ZEV mandate.

It comes three years after the previous, Conservative-led government axed the Plugin Car Grant, which offered a fixed £1500 off the list price of EVs that cost less than £32,000.

Unlike that scheme, UK buyers will not have to apply for the grant themselves. Instead, car firms will submit their EVs for inclusion in the scheme, based on the government’s criteria. However, manufacturers will find that accessing the money isn’t easy.

“The criteria for qualification looks quite tough,” former Nissan executive Andy Palmer told Autocar. “I’m in contact with several OEMs and they still don’t know which models will qualify.”

EVs made in Asia, including in China, which are among the cheapest on sale, are expected to be excluded from the scheme.

This is owing to its strict emissions barometer, which includes penalising battery manufacturing in countries with carbon-intensive grids.