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Car makers offer big discounts as UK unveils new EV grant

Manufacturers are reducing prices by up to £3750 ahead of the UK's new Electric Car Grant.

July 28, 2025 at 02:08 PM

Up to £10k off EVs as makers slash prices to beat new grant

Car manufacturers are reducing electric vehicle prices in anticipation of new government grants.

Car manufacturers cut prices as UK grants drive electric vehicle sales

Leading car manufacturers, including Hyundai and Volvo, are cutting prices on their electric vehicles (EVs) by up to £3750 as they prepare for the rollout of the UK government's new Electric Car Grant (ECG). This initiative, part of a £650 million government funding package, aims to revive stagnant EV sales following the discontinuation of the previous Plug-in Car Grant in 2022. The amount of the grant will depend on various factors, including the car's environmental impact and production emissions, with discounts ranging from £1500 to £3750 for qualifying models priced under £37,000. However, matching these prices currently, several manufacturers have launched their own pre-emptive discounts, notably those from companies like Hyundai and GWM, which may not qualify for the ECG.

Key Takeaways

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UK government introduces new Electric Car Grant to boost EV sales.

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Manufacturers like Hyundai and Volvo are reducing prices ahead of grant rollout.

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Grant amounts may vary based on emissions and environmental impact.

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Qualifying vehicles must start under £37,000.

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Many Asian-made EVs, including those from Hyundai, may not qualify for the ECG.

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Pre-emptive discounts from carmakers highlight their concerns about eligibility.

"The new ECG aims to revive stagnant EV sales in the UK"

This describes the primary purpose of the new grant program.

"Manufacturers are cutting prices to not miss out on potential sales"

This reflects the proactive stance of automakers in response to the coming grant.

"It's expected that many Asian-made EVs will not meet the qualifying criteria."

This highlights potential barriers for foreign manufacturers in the UK market.

"The new grants could reshape our approach to sustainable vehicle production."

This statement acknowledges the long-term impact of the new ECG on manufacturing and sales.

The ECG signals a strategic pivot towards supporting sustainable vehicle production in the UK. However, this initiative highlights a significant gap for manufacturers outside of Europe. As government criteria will likely exclude many Asian-made vehicles, the initiative could unintentionally reinforce local manufacturers while placing foreign competitors at a disadvantage. The strategic price cuts by companies like Hyundai and GWM suggest not only anticipation of governmental barriers but also a reaction to shifting consumer demand within a competitive market. The result could reshape the EV landscape and influence purchasing trends significantly.