Fiat introduces its own discount offer in advance of the Electric Car Grant rollout
The UK government has introduced a new Electric Car Grant (ECG) to stimulate sales of electric vehicles (EVs). This grant offers discounts of up to £3750 on qualifying new, fully electric cars, with the aim of making EVs more affordable for consumers.
Several car manufacturers, including Hyundai, MG, and Great Wall Motor (GWM), have already announced discounts on their electric models, likely in anticipation of their cars not being eligible for the ECG.
Eligibility Criteria for the ECG
To be eligible for the ECG, a vehicle must meet certain criteria. It must be a new, fully electric car priced at or below £37,000 including VAT and mandatory extras. The car must have zero tailpipe emissions, offer at least 100 miles of range (WLTP standard), provide a minimum 8-year or 100,000-mile battery warranty retaining at least 70% capacity, and have at least a 3-year or 60,000-mile overall vehicle warranty. Additionally, it must hold UN Regulation No. 100 type approval, certifying safety and performance standards.
The ECG is split into two tiers based on sustainability and environmental impact. Cars that score highly on these criteria receive the full £3750 grant. Cars with lower sustainability scores receive a reduced £1500 grant. The environmental scoring heavily weighs factors such as the carbon intensity of battery cell manufacturing and vehicle assembly.
Discounts on Various Models
Fiat has reinstated its £1500 'E-Grant' for the 500e, 600e, Abarth models, lowering their prices to £23,535, £28,535, £28,485, and £35,485 respectively. Great Wall Motor (GWM) has introduced a £3750 grant for the Ora 03 hatchback, reducing its price to £21,245. The Alfa Romeo Junior Elettrica now has a discount of £1500, making its retail price £32,405.
Funding and Emissions Targets
The ECG is backed by £650 million of government funding. To qualify, car manufacturers must meet science-backed emissions targets, and individual model lines must start at below £37,000 in entry-level trim. Cars produced in Asian countries, such as China, South Korea, and Japan, are not expected to be eligible for the ECG.
Manufacturers must apply to the UK Department for Transport (DfT) and Vehicle Certification Agency (VCA) for vehicle eligibility certification and sign a legal agreement outlining the grant’s terms. New variants of eligible vehicles require separate approval if they have different type approval documentation.
In summary, foreign manufacturers must ensure their electric cars meet these price, warranty, range, emissions, and type approval criteria and apply for certification to have their models listed for ECG eligibility. This new grant is expected to make electric cars more accessible to a wider audience, encouraging more drivers to make the switch to electric vehicles.
[1] UK Government Announces Electric Car Grant [2] Electric Car Grant: How it Works [3] Electric Car Grant: Eligibility Criteria [4] Electric Car Grant: Application Process
- With the introduction of the Electric Car Grant, the automotive industry is eager to capitalize on the increasing demand for electric vehicles, particularly in finance and car-maintenance sectors, as well as in the lifestyle and gadgets realm, given the advent of smartphones and technology playing a significant role in electric vehicle ownership.
- The government's decision to offer discounts on electric cars through the Electric Car Grant signals a concerted effort to stimulate sales by making EVs more affordable for consumers, which may also lead to a shift in transportation from fossil fuel vehicles to electric-vehicles.
- Although the ECG offers substantial discounts on qualifying new, fully electric cars, some manufacturers have already announced their electricity-powered models' reductions, possibly anticipating their vehicles may become ineligible for the grant.
- To be considered eligible for the Electric Car Grant, cars must comply with several stringent requirements, such as zero tailpipe emissions, having a minimum range of 100 miles (WLTP standard), providing extended warranties, and meeting UN Regulation No. 100 type approval, among others.
- As the UK Department for Transport and the Vehicle Certification Agency evaluate manufacturers' applications, consumers will increasingly find an array of electric vehicles available with discounts under the Electric Car Grant, transforming the automotive landscape and paving the way for the prevalence of electric vehicles in everyday transportation.
