Chinese carmaker slashes prices to match Labour grant

Telegraph

4 days ago

A Chinese electric carmaker is lowering the cost of its vehicles sold in Britain by copying new subsidies offered by Sir Keir Starmer's Government.
Leapmotor, based in Hangzhou, is ineligible for Labour's Electric Car Grant scheme after the Government blocked Chinese carmakers from accessing the discounts because their cars were not made in an environmentally friendly way.
But on Friday, Leapmotor said it would offer a £1,500 and £3,750 price reduction on two of its cars – the same amount as the UK government grants.
The Chinese business will sell its small T03 runaround for £14,495, including the £1,500 price cut.
This makes it Britain's cheapest electric motor after undercutting Dacia's £14,999 Spring, which is also made in China. The company also lowered the cost of its C10 SUV by £3,750. The car now costs £32,750.
Leapmotor billed the price cuts as 'Leap-Grant' and said it had introduced the offers to 'help car buyers make the leap into electric by offering immediate savings'.
The business, which builds its cars in China but sells them in Europe in a joint venture with Vauxhall-owner Stellantis, said the government grant scheme had 'left many potential car buyers in a state of limbo – unsure of when or how to take advantage of the promised incentives'.
'Consumers are still waiting to learn which vehicles will qualify, how much financial support will be available and when the grants will take effect.'
Labour's electric car grant scheme comes as Chinese EV brands flood the UK market, with the launch of cheap models from businesses including BYD, Chery and Jaecoo.
While the grants will offer discounts on electric cars worth up to £37,000, the Department for Transport officials do not intend to extend the subsidies to Chinese-made cars due to the industry's reliance on fossil fuels.
Lilian Greenwood, the transport minister, this week said: 'The grant is restricted to those manufacturers that reach minimum environmental standards.
'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.'
The decision prompted a warning from the Chinese embassy, which said it would 'resolutely safeguard' the interests of its electric car industry against potential discrimination.
The world's largest EV maker, BYD, said it planned to apply for the discount scheme despite the likelihood it would be rejected.
The discounts by Leapmotor threaten to fuel a price war for battery-powered cars in the UK, which could mirror a similar battle in China.