What’s Changing with Electric Car Discounts in the UK?
If you’ve been eyeing a new electric car, you might have noticed some big changes brewing in the UK market. After a lull in EV sales following the end of the government’s Plug-in Car Grant in 2022, a fresh wave of discounts is rolling in—both from the government and from carmakers themselves. So, what’s behind these offers, and how can you make the most of them? Let’s break it down.
Why Did the UK Need a New Electric Car Grant?
The truth is, electric vehicle sales in the UK hit a bit of a plateau after the previous grant ended. According to the Society of Motor Manufacturers and Traders (SMMT), EV uptake slowed in 2023, with private buyers especially hesitant due to higher upfront costs. To reignite interest, the government announced the Electric Car Grant (ECG) in early 2024, backed by £650 million in funding. The goal? Make EVs more accessible and keep the UK on track for its ambitious net-zero targets.
How Does the New ECG Work—and Who Qualifies?
Here’s where things get interesting. The ECG offers a discount of either £1,500 or £3,750 on qualifying electric cars. But it’s not a one-size-fits-all deal. The amount depends on the car’s environmental impact, specifically the CO2 emissions generated during production—including battery manufacturing and vehicle assembly. The government hasn’t published the exact thresholds yet, but the focus is clear: reward the cleanest cars, not just the cleanest tailpipes.
There’s another twist. Only models with a starting price below £37,000 in entry-level trim are eligible, and manufacturers must meet science-backed emissions targets. This means some popular models—and even entire brands—might miss out, especially those with higher production emissions or price tags.
Are Some Brands Left Out? The Impact on Asian Manufacturers
One of the more controversial aspects of the new ECG is its indirect exclusion of many Asian-made EVs. Because of the emissions criteria and price cap, cars produced in countries like China, South Korea, and Japan may not qualify. Brands such as Hyundai, MG, and GWM have already responded by launching their own discounts, anticipating they might be left out of the government scheme.
This move has sparked debate. On one hand, it encourages manufacturers to clean up their supply chains. On the other, it could limit consumer choice and slow the adoption of affordable EVs, many of which are produced in Asia. It’s a delicate balance between environmental goals and market realities.
Which Car Makers Are Offering Their Own Discounts Right Now?
While the government finalizes ECG details, several manufacturers aren’t waiting around. Here’s a snapshot of what’s on offer as of June 2024:
Alfa Romeo: The Junior Elettrica, Alfa’s first EV, now comes with £1,500 off, bringing the price to £32,405. It’s a solid entry for those who want Italian flair in a compact crossover.
Fiat: Fiat has revived its £1,500 ‘E-Grant’ for the 500e, 600e, and their Abarth counterparts. Prices now start at £23,535 for the 500e and £28,535 for the 600e. The upcoming Grande Panda Elettrica, however, isn’t included.
GWM (Great Wall Motor): The Ora 03 hatchback (formerly Funky Cat) gets a hefty £3,750 discount, dropping its price to just £21,245. That’s a compelling offer for budget-conscious buyers.
Hyundai: Hyundai is matching the government’s top discount with £3,750 off the new Inster hatchback, now £19,755. Other models like the Ioniq 5, Ioniq 6, and Kona Electric get £1,500 off.
MG: MG is offering £1,500 off its 4 EV hatchback and the new S5 EV crossover, making them even more competitive at £25,495 and £26,995, respectively.
Leapmotor: This Stellantis-backed brand is giving £1,500 off the T03 city car (now £14,495) and £3,750 off the C10 SUV (now £32,750). The T03, in particular, is one of the most affordable EVs on the market.
Skywell: The BE11 SUV comes with a whopping £3,750 discount, plus a £6,000 dealer contribution—meaning you can drive away for £27,245. That’s a rare deal for a spacious electric SUV.
Smart: The Smart #1 and #3 crossovers get £1,500 off, on top of existing manufacturer contributions (up to £3,000 for the #1 and £2,000 for the #3). The #1 now starts at £25,460, and the #3 at £30,460.
Volvo: Volvo has trimmed £1,500 off the EX30, EX40, and EC40. The EX30 now starts at £31,560, making it one of the more affordable premium EVs.
How Do These Discounts Stack Up Against the ECG?
It’s clear that carmakers are eager to keep EV sales moving, even before the ECG kicks in. In some cases, their discounts match or even exceed what the government will offer. For example, Skywell’s combined dealer and manufacturer contributions dwarf the ECG, while Hyundai and GWM are matching the top grant level.
For buyers, this means there’s no need to wait for the government scheme—at least not if you’re interested in one of these models. But keep an eye on the fine print: some discounts are time-limited or tied to specific trims.
What Should You Consider Before Buying an Electric Car Now?
With so many discounts flying around, it’s tempting to jump in. But a few things are worth considering:
1. Eligibility: Not all models or trims qualify for the ECG or manufacturer discounts. Double-check before you commit.
2. Timing: Some offers may expire once the ECG is fully rolled out. If you’re set on a particular car, acting sooner could save you money.
3. Total Cost of Ownership: Don’t just look at the sticker price. Factor in running costs, insurance, charging infrastructure, and potential resale value. According to a 2024 report by the RAC Foundation, EVs can save drivers up to 50% in fuel and maintenance over five years compared to petrol cars.
4. Supply Chain and Sustainability: If you care about the environmental impact beyond tailpipe emissions, dig into how your chosen car is made. Some brands are more transparent than others about their manufacturing footprint.
Are There Any Hidden Downsides to These Discounts?
While the discounts are welcome, there’s a risk that limiting the ECG to certain price points and emissions profiles could slow the arrival of affordable, mass-market EVs. It may also push some buyers toward used cars or hybrids if their preferred models aren’t included.
On the flip side, the focus on cleaner manufacturing is a step in the right direction. As battery production gets greener and supply chains decarbonize, more models should qualify for the higher grants in the future.
The Bottom Line: Should You Buy Now or Wait?
If you’ve found an EV that fits your needs and budget—and it comes with a chunky discount—there’s little reason to hold off. Manufacturers are keen to move stock, and the current deals are some of the best we’ve seen since the original Plug-in Car Grant days.
That said, the market is evolving fast. If you’re not in a rush, it’s worth watching how the ECG shakes out and whether more models become eligible as manufacturers adapt. Either way, the message is clear: the UK is serious about getting more electric cars on the road, and there’s never been a better time to make the switch.
Thinking about taking the plunge? Start by test-driving a few models, crunch the numbers, and see which offer feels right for you. The future of driving is electric—and with these new discounts, it’s closer than ever.