Car buyers are set to learn which models qualify for the UK government’s new Electric Car Grant (ECG) on August 11.
Speaking at a briefing to announce the UK’s latest automotive manufacturing figures, Society of Motor Manufactures and Traders (SMMT) boss Mike Hawes confirmed the August date and said he expected around one third of electric cars on the market to qualify for the grant based on the criteria set out by government.
This criteria includes not just a £37,000 cap for a qualifying model but also science-based targets around emissions from a car company and its models’ manufacturing location.
Should a car qualify, grants will be banded at either £1500 or £3750.
On the basis that half the market is ruled out on price, that means around two thirds of EV model ranges with a sub-£37,000 model look set to qualify for a grant, based on early projections.
Hawes confirmed that the automotive industry had not been consulted on the ECG ahead of its publication and said that while “any support is the right thing”, the fact that it “will help some but not all OEMs” isn't ideal.
The fact that some manufacturers and models would be denied access to the grant also meant that for them “the route to ZEV mandate compliance is worse" and "at £37,000 you split the market”.
The SMMT had been advocating for VAT cuts on EVs sold to private buyers as a way of ensuring support was targeted at the area of the market that needed it most.
“We understand the ambition, but there is a lack of clarity,” said Hawes.
Hawes believes that the ECG isn't intended to disadvantage any particular region or manufacturer, despite cars originating from South Korea and China set to miss out, saying it looked to have been formulated to target “products with broader sustainability goals, not just zero tailpipe emissions”.
It's also worth noting that “the government has said it will look to support local manufacturing if possible”, he added.
The chances of access to the ECG convincing any foreign car maker to invest in UK EV manufacturing is incredibly slim, said Hawes, as it's likely the £650 million purse would have run out by the time production could be ramped up.
In response to the fact that the ECG is also available to business buyers (who already get EV subsidies through favourable BIK tax rates), Hawes said the “objective of the government is to get EVs on the road, and that includes fleet, rightly or wrongly”.
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Not sure if it's my bad English or bad maths, but I can't make head nor tail of this article.
Under the criteria set out by Gov, hawes expects a third of cars to qualify. Eh? Surely every car that fits the criteria qualifies, otherwise why have a criteria?
Half the market is ruled out on price. Eh? Is Mark Tissaw suggesting that only half of all EV's on the market are over £37k? That's nonsense.
Of those that do qualify under the £37k threshold, Autocar expects two thirds to qualify. But gov haven't given any details yet so how can anyone suggest two thirds will qualify? And going back to my first point, Hawes says it'll be a third.
I'm confused as hell. The article isn't based on anything oter than any EV over £37k won't qualify. And even that in itself is unclear - is it based on the basic list price? Does it include optional extras? etc.
Why even bother to speculate when I doubt the Gov themselves know what their criteria is? If I were to speculate, I'd say the Gov are currently making up the criteria so that it will favour UK built cars. I believe they'll be doing the same as Trump and the EU are doing with cheaper cars from Asia, and effectively slapping on a premium.
It's yet another attempt by someone pretending it's an environmental benefit when clearly it isn't. If they're serious about introducing EV's, those cheap Chinese cars should also qualify.
Of course, if they don't qualify then what is Gov saying? Are they suggesting certain EV's aren't as clean as they're made out to be? It's another complete balls up by Labour trying to appease a particular group. Just make one simple rule and get on with it for God's sake. There will be more bloody money wasted on admin than any benefits such a scheme will bring.
A whole load of non-scientific geopolitics being played out. I get clobbered for driving around in what was a state-of-the-art car while the government takes my tax money and gives it to wealthy people so that they can continue the motoring bandwagon while pretending to be effective at reducing co2.
Can't understand why the £3750 grant has excluded EV's built in China,Japan & Korea? after all until the new Nissan Leaf comes on sale later this year there aren't any UK built EV's on sale so the companies that will benefit from this will be Renault & Stellantis now and VW later. So rather than being a helping hand to customers wishing buy low priced Far Eastern EV's but it's a form of back door protectionism .
Nowt wrong with some thinly veiled protectionism, just look at the French. The masters of introducing a climate friendly tax that just happens to benefit domestic manufacturers. Genius.
The difference being that we have no domestic manufacturers of EVs costing <£37k anymore really to protect. Shame.