New cheapest EV in Britain revealed as Tesla rival knocks £1,500 off price of compact city car

The Sun

20-07-2025

A NEW Chinese electric vehicle has grabbed the crown as Britain's cheapest EV – knocking its rival off the top spot with a surprise price cut.
The Leapmotor T03 city car is now on sale for just £14,495 after the manufacturer slashed £1,500 from the original list price.
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That makes it £500 cheaper than the Dacia Spring, which had held the budget EV title for the past year at £14,995.
The price drop applies immediately across the UK as Leapmotor looks to get ahead of the Government's new Electric Car Grant, which is set to come into force next month.
The firm, which now sells its models through Vauxhall and Peugeot showrooms as part of a deal with European giant Stellantis, says it is offering customers an instant saving while the official subsidy remains weeks away.
Based in China, Leapmotor is also cutting the cost of its larger C10 SUV by £3,750.
The new price tag of £32,750 puts it well under the Government's £37,000 grant threshold.
Both cars qualify for 0 per cent finance deals and come with long warranties — four years on the car and eight years on the battery.
Transport Secretary Heidi Alexander confirmed the Government's new scheme on Monday.
The Electric Car Grant will offer between £1,500 and £3,750 off qualifying electric vehicles, depending on how sustainably they are made.
However, it's not available yet, as carmakers must apply for approval — a process that could take weeks.
That's left firms like Leapmotor in limbo.
The brand says its 'Leap-Grant' is a proactive move to give drivers savings now, before the Government scheme kicks in.
Managing director Damien Dally said the company wants to give drivers clarity, confidence and immediate savings.
But questions hang over whether Leapmotor — and other Chinese EV makers — will qualify at all.
To get the full Government grant, manufacturers must meet green targets under the Science-Based Targets initiative, a framework that rates the environmental impact of vehicle production, including energy use at factories.
Transport Minister Lilian Greenwood has warned that vehicles made in China may not be eligible.
Speaking on the BBC's Today programme, she said factories powered by coal are unlikely to meet the Government's strict criteria.
She added that only brands reaching minimum environmental standards will be approved for taxpayer support.
This has sparked tension with the Chinese government.
A spokesperson for the Chinese embassy in London said the UK must follow World Trade Organisation rules and avoid discriminatory policies.
They warned they are monitoring the situation closely and would defend the rights of Chinese companies.
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Even BYD — China's biggest EV manufacturer — has confirmed it is applying for the grant but, like Leapmotor, has yet to hear back.
There's also doubt over the Dacia Spring's eligibility.
Although Dacia is a Renault-owned brand, the Spring is built in Wuhan, China, at a joint venture facility shared with Dongfeng Motor Group.
Seven low-cost electric cars expected to benefit from the grant — including the Dacia Spring, MG4, Peugeot e-208, Fiat 500e and Volkswagen ID.3 — though most will only get the lower £1,500 discount unless they can prove greener production credentials.
But with the Government now focusing on sustainability standards, many of those could also miss out on the full grant unless their makers can prove they meet the green benchmarks.
Tax payers are, however, footing the bill for the £650million subsidy scheme, including for EVs leased through Motability, prompting criticism from some quarters.
Commentators have questioned whether public funds should be used to make new cars cheaper for wealthier drivers at a time when many families are struggling to afford food.
The Government is also promising £63million to improve the UK's public charging infrastructure and £25million to help people without off-street parking charge their EVs at home.
But even Transport Secretary Heidi Alexander admitted she doesn't currently drive an electric vehicle herself, citing the cost.
For now, Leapmotor is pressing ahead with its own incentive.
The T03 is being offered on a four-year personal contract purchase plan at just £169 per month with a £169 deposit.
The larger C10 SUV comes in at £319 per month, also with a matching deposit and 0 per cent APR.
Both offers run until 30 September.
Whether the brand qualifies for official Government support or not, Leapmotor has made its move — and, for now at least, it means Britain's cheapest electric car is Chinese, costs just under £14.5k.
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