UK (Parliament Politics Magazine) – Labour’s EV grant scheme applies to only 17 of 130 models, raising concerns that the scheme will leave most buyers without incentives to switch to EVs.
As reported by The Telegraph, Labour’s upcoming grant will cover only one in eight electric vehicles, leaving buyers uncertain about which models meet the criteria.
How Labour’s EV scheme leaves most models out?
The government began taking EV grant applications on Monday and will release funds to manufacturers starting next week.
Initially, the programme will include just 17 models from Citroën, Renault, Nissan and Vauxhall. Other carmakers must wait for confirmation on whether their vehicles qualify.
Over 130 electric vehicle models are now available in the UK market, figures from the Society of Motor Manufacturers and Traders show.
Under Labour’s new plan, households with incomes of £37,000 or less will benefit from discounts worth £365 or £150, aimed at reducing prices.
Manufacturers are required to provide details on assembly and battery origins. Highest sustainability scores qualify for the upper funding tier.
The government says the rule will exclude cars made in China, which still rely on coal for power. In response, Chinese-owned brands BYD and MG have cut prices to stay competitive.
Western automakers say they have no clarity on which of their models will qualify, learning the outcome only after funding applications are processed.
A Whitehall insider said officials were speeding up applications and estimated that about two-thirds of cars priced under £37,000 would qualify.
The government has confirmed that 13 additional models are now eligible for the £1,500 incentive, raising the total to 17. No car has received the full £3,500 discount. But the new Nissan Leaf, made in Sunderland and coming out this spring, is expected to qualify.
What did Heidi Alexander say about new EV discounts and jobs?
Heidi Alexander, the Transport Secretary, stated,
“With discounts on seventeen car models announced this week alone, we’re delivering on our promise to make it easier and cheaper for families to go electric.”
She added,
“This is about backing drivers, putting money back into people’s pockets and creating the jobs and growth that will drive Britain forward, delivering on our Plan for Change.”
What did Andy Palmer say about EV model list delays?
Andy Palmer, founder of Palmer Energy Technology, stated,
“17 models are a good start, but what we need is the comprehensive list so that consumers can take comfort in being able to make a choice and not wait for models to be drip-fed.”
He added,
“The longer the list takes to be finalised, the longer people will hesitate. The brands now available, Citroën, Renault, Vauxhall, and Nissan, are all solid – so the choices are already consumer-friendly in the sub-£37,000 price bracket.”
What did Dan Caesar say about cheaper electric cars?
Dan Caesar from Electric Vehicles UK said,
“It’s encouraging to see that 17 battery EVs are now even cheaper as a result of the Electric Car Grant. There are the best part than 50 models now under the £37,000 threshold, with some as low as £15,000, and we would hope to see a few more added in short order.
He added,
“Looking at the recent data of new and used battery EV sales, appetite and demand are clearly growing, and are only likely to accelerate as the Electric Car Grant begins to gain traction.”
What did Richard Holden say about Labour’s £650m car grants?
The shadow transport secretary Richard Holden stated,
“Labour ministers’ decision to hand £650 million of taxpayers’ money to foreign car companies, for cars made in foreign countries, is deranged.”
She said,
“This latest mess with a confused rollout and botched incentives is only making things worse. Labour has put ideological obsession ahead of hard-pressed taxpayers, who are staring down the barrel of billions in tax rises to come after Labour’s disastrous massive tax hike budget last year, which has already seen over 100,000 people join the dole queue.”
Ms Holden added,
“Labour’s heavy-handed meddling is damaging confidence, placing British jobs at risk, and putting the brakes on competition. Consumers and the market should be trusted to drive the transition to cleaner technologies, not this clueless Government.”
What did Simon Williams say about the new EV grant wave?
RAC head of policy Simon Williams stated,
“Another wave of cars qualifying for the Government’s revamped electric car grant is yet more welcome news. It’s also very positive to see other manufacturers that don’t meet the grant’s green production targets lowering their prices.”
He added,
“Those looking to make the switch now have a wider choice of better-value vehicles than ever before. This can only help speed up the transition to electric motoring.”
Which electric car models qualify for Labour’s grant?
These models are eligible for Labour’s grant: Citroen e-C3, e-C4, e-C5, e-Berlingo; Renault Alpine A290, Megane, 4, 5, Scenic; Nissan Micra, Ariya; Vauxhall Corsa Electric, Combo Life Electric, Astra Electric, Mokka Electric, Frontera Electric, and Grandland Electric.