ASIAN BRANDS REACT TO EV GRANT AS LOOPHOLES FOUND

Some offer own discounts in the wake of UK’s ‘discriminatory’ new ECG

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Car makers that look set to be denied access to the UK government's new Electric Car Grant (ECG), announced earlier this month, have launched their own equivalent discounts of up to £3750, matching the ECG’s maximum saving.

Cars eligible for the ECG will be announced on 11 August, but Autocar understands only around two thirds of EVs costing less than the scheme’s £37,000 limit will be eligible.

The models missing out are to be penalised for high emissions in their countries of manufacture, with brands and cars from China and South Korea - such as MG and Hyundai - among those most likely to be affected.

Likely preempting that their models will be denied access to the ECG, the pair have, along with some other car makers, launched their own equivalent discounts.

MG Motor UK commercial director Guy Pigounakis told Autocar this was to counter a halting of orders as buyers waited for the government's grant scheme to go live.

“Within 24 hours of the government making the announcement, order take across all brands at dealerships for electric cars under £37,000 quite literally stopped,” he said.

Stellantis brand Leapmotor, another to introduce new discounts, confirmed to Autocar that it would pull its own incentive of up to £3750 if its cars were to be eligible for ECG.

Society of Motor Manufacturers and Traders (SMMT) boss Mike Hawes said that while any support “is the right thing”, the fact that it will help “some but not all OEMs" isn’t ideal.