Why Are MG and Other Brands Offering Big Discounts on Electric Cars Right Now?
If you’ve been eyeing an electric car lately, you might have noticed some eye-catching discounts—especially from brands like MG, Leapmotor, and GWM. So, what’s behind these sudden price drops? It all comes down to a new government grant, a bit of uncertainty, and some clever maneuvering by carmakers.
What’s the Story With the New Electric Car Grant?
The UK government recently announced a fresh Electric Car Grant (ECG), promising buyers either £1500 or £3750 off a range of electric vehicles priced under £37,000. Sounds great, right? Here’s the catch: while the grant was announced with much fanfare, the official list of qualifying models hasn’t been published yet. Manufacturers can now apply, but buyers are left waiting for clarity.
This limbo has had a real impact. According to Guy Pigounakis, MG’s UK commercial director, orders for sub-£37,000 EVs “quite literally stopped” within 24 hours of the grant’s announcement. People are holding off, waiting to see which cars will actually qualify for the discount.
Why Did MG Jump In With Its Own Discount?
MG decided not to wait around. To keep sales moving, they introduced a £1500 discount on their MG 4 and S5 EVs—even before knowing if these models will qualify for the government grant. It’s a bold move, and not without risk. If the cars end up excluded from the grant, MG will have already slashed prices out of their own pocket.
But for buyers, it’s a win-win. You get a discount now, and if the grant comes through, you might save even more later.
Could Chinese-Made Cars Miss Out on the Grant?
Here’s where things get complicated. Industry insiders believe the new grant’s criteria might be a subtle way to exclude Chinese-made cars from the biggest discounts. To qualify, manufacturers must be signed up to the Science Based Targets Initiative (SBTi) for carbon emissions reduction—a requirement that neither MG nor its parent company, SAIC, currently meets.
There’s another hurdle, too. The level of grant funding depends on how “clean” the power grid is in the country where the car and its battery cells are made. Since China’s grid is still heavily reliant on coal, Chinese-made EVs may not be eligible for the full grant amount, if they qualify at all.
Are Other Brands Following MG’s Lead?
Absolutely. Leapmotor was first out of the gate, slashing £3750 off its C10 and T03 models, making the T03 the UK’s cheapest new EV at retail. GWM quickly followed suit, discounting its Ora 03 by the same amount. These early-bird discounts are a way for Chinese brands to stay competitive in the face of potential grant exclusions and to keep buyers interested while the rules are still up in the air.
What Should Buyers Do While the Grant Details Are Unclear?
If you’re in the market for an affordable EV, this period of uncertainty could actually work in your favor. Brands are eager to keep sales moving, so you could snag a great deal before the official grant list is finalized. But it’s wise to keep an eye on the news—once the government publishes the qualifying models, the landscape could shift quickly.
A few tips:
– Ask dealers about current discounts and whether they’ll honor the grant if your chosen car qualifies later.
– Check if the manufacturer is signed up to the SBTi or if the car is made in a country with a cleaner power grid—these factors could affect eligibility.
– Don’t be afraid to negotiate. With so much uncertainty, dealers may be more flexible than usual.
How Might This Impact the Electric Car Market in the UK?
This situation highlights just how sensitive the EV market is to government incentives and policy changes. When buyers aren’t sure what support they’ll get, many simply wait. That’s a headache for manufacturers, but it also opens the door for creative solutions—like the discounts we’re seeing now.
Long-term, the UK’s approach to grants and eligibility could shape which brands thrive and which struggle. If Chinese-made cars are effectively shut out, European and UK-based manufacturers could gain an edge. But for now, buyers have a rare window of opportunity to take advantage of extra discounts.
The Bottom Line for Shoppers
If you’re thinking about going electric, now’s a great time to do your homework. The market is in flux, and that means deals are out there for those willing to act quickly. Keep an eye on government updates, ask the right questions at the dealership, and you could end up with a bargain that might not be around for long. In the fast-changing world of EVs, a little timing can make a big difference.