Hugely popular EV with 500-mile range could be banned from £3,750 grant
A hugely popular EV with 500-mile range is at risk of being banned from the UK's new £3,750 electric car grant due to new government restrictions.
The UK government's £650m Electric Car Grant (ECG) subsidises up to £3,750 off the purchase price of new EVs costing under £37,000, in the hopes of accelerating the country's transition away from petrol and diesel vehicles ahead of the 2030 ban on new internal combustion engine (ICE) car sales.
However, the scheme contains strict criteria — only manufacturers who meet "minimum environmental standards" qualify. Notably, vehicles manufactured in countries with "poor sustainability records or high carbon emissions" are ineligible for the scheme. It comes after UK drivers were warned over 'avoiding' road instead of having to follow new rule.
China, which dominates global EV and battery manufacturing, relies heavily on coal-powered electricity for its factories. According to Transport Minister Lilian Greenwood, in an effort to ensure that the EV shift not only reduces emissions on the road, but also in the manufacturing and supply chain, any manufacturer whose production is powered significantly by coal will be excluded from grant eligibility. As a result, Chinese EVs, including those from BYD and MG, will not qualify.
This also includes Chinese smartphone giant Xiaomi 's game-changing entry into the EV market, the new new YU7 electric SUV, which received over 200,000 pre-orders within just three minutes of its launch. The impressive model has an incredible 518-mile range, gets from naught to 60 mph in just 3.23 seconds and boasts a top speed of 157 mph.
China's government has strongly protested the measure, arguing the UK is violating World Trade Organisation (WTO) rules by giving "favourable treatment" to certain countries over others. WTO rules prohibit discrimination in international trade.
An embassy spokesperson said: "China has abolished all market access restrictions on foreign investment in manufacturing and remains open to international carmakers, including those from the UK, who can fully share in the dividends of China's big market.
"We hope the UK's industry policy will observe WTO rules, respect market economy laws and provide an open, fair, just and non-discriminatory environment for the investment and operation of businesses from all countries, including China. The Chinese side is closely following the situation and will resolutely safeguard the legitimate rights and interests of Chinese companies."
The UK's move comes amid similar tensions in Europe, where EU authorities are investigating Chinese EV imports that threaten the dominance of local auto manufacturers.
On July 16, Ms Greenwood told the BBC 's Today programme: "We don't expect any cars that are assembled in China to be eligible for this scheme. The grant is restricted to those manufacturers that reach minimum environmental standards. And, frankly, if you generate a lot of the electricity that powers your factory through coal power stations, then you are not going to be able to access this grant."
A Department for Transport (DfT) spokesperson said: "Our electric car grant will give drivers across the UK access to discounts on dozens of new electric car models, helping them save up to £3,750 per car and putting money back into the pockets of working people."
So while the policy aims to support to switchover to EVs and help the UK reach its climate goals, it could also limit Brit consumers' access to some of the most advanced and affordable EVs on the market.
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