New cheapest electric car in Britain: Chinese brand slashes price as reports suggest it WON'T qualify for government's EV grant

Daily Mail​

18-07-2025

The £14,995 Dacia Spring is no longer Britain's cheapest electric car... for the time being, anyway.
It has lost its crown to a Chinese newcomer, which today announced it is slashing its model prices in response the Government's new Electric Car Grant.
Leapmotor - which recently agreed a deal with European giant Stellantis to share its Chinese-made EVs in its network of UK showrooms - has knocked £1,500 off the price of its T03 city car, which has a range of 165 miles on a full charge.
This has slashed the price to £14,495 - undercutting Dacia's bargain battery model by £500 to make it the most affordable new EV sold in Britain.
Leapmotor's only other model sold in the UK, the C10 family SUV, is also being discounted by £3,750 with immediate effect.
The size of these two price cuts matches the minimum and maximum discount being offered through Labour's new Electric Car Grant announced on Monday.
However, while Leapmotor claims the 'Leap-Grant' is being offered to customers now to avoid delays for the Government scheme's arrival, reports suggest it and other Chinese brands are unlikely to qualify for the taxpayer-funded subsidies at all...
The Electric Car Grant (ECG) - announced by Transport Secretary Heidi Alexander this week - is the Government's new big hope to reignite demand for EV as it continues to steer towards outlawing sales of petrol and diesel cars in 2030.
However, it won't be available with immediate effect.
This is because manufacturers need to apply to be eligible for the scheme, which could take weeks, experts have hinted.
Leapmotor UK says this is why it is 'taking a proactive leap forward to help electric car buyers save up to £3,750 immediately, by launching its own self-funded EV grant, effective from today.'
It adds: 'This initiative makes Leapmotor the first car manufacturer in the UK to offer such a grant since the Government announced its own EV grant scheme, which won't kick in for consumers until next month.'
For the Government scheme, only cars up to £37,000 qualify, which rules out premium models, including every Tesla on sale. No Audi, BMW or Mercedes EV will be eligible either.
This might sound like good news to Leapmotor and its budget-friendly model offering, but reports have suggested it - and other Asian brands - will fail to meet a secondary stipulation put in place by government to qualify for the ECG.
In order to be eligible, manufacturers must meet specific sustainability criteria based on their Science-Based Target (SBT).
This is an industry-wide green standard providing scores for companies reflective of the carbon impact of the production of products - in this instance, electric cars and their batteries.
Only the greenest companies will receive the full £3,750 grant subsidy, while those considered to only meet a lower band will be issued £1,500 discounts, the DfT has confirmed.
However, vehicles that don't meet a minimum threshold - which is yet to be divulged - will not receive a grant at all.
Reports have suggested that Chinese EV makers could fall foul of the emissions-based rules. As could other Asian manufacturers, including those from Korea and Japan, according to Autocar.
The Government insists every car maker qualifying for the grant must achieve certain industry scores for the green production of its cars and batteries. Reports have suggested that Chinese marques might not make the cut
Leapmotor says, like consumers, it is 'still waiting to learn which vehicles will qualify, how much financial support will be available, and when the grants will take effect'.
Its terms and conditions say its discounts are subject to orders placed between 18 July and 30 September 2025 from authorised Leapmotor retailers.
However, if it fails to qualify for the Government grant on sustainability grounds, it might be forced to extend the deals availability.
That said, Dacia's Spring - which costs from £14,995 and has been Britain's cheapest EV for the last 12 months - is also produced in China.
In fact, it's manufactured in Covid-originating Wuhan where it is built by Dongfeng Renault, a joint venture between Dacia's parent company Renault Group and Dongfeng Motor Group.
Whether it will qualify for the Government's £1,500 to £3,750 grants is yet to be seen.
Powered by a 37.3kWh battery and a 95hp (70kW) electric motor and riding on skinny 15-inch wheels, the T03 has a claimed average range of 165 miles (245 miles if driving only in town)
For the next two months at least, the T03 is being knocked down from £15,995 to just £14,995 with a £1,500 discount applied.
Those using Personal Contract Purchase (PCP) finance can pick one up before the end of September for £169 per month and £169 deposit on 0 per cent APR for four years.
The bigger C10 SUV is slashed by £3,750 to £32,750 or on a 0 per cent four-year PCP contract for £319 per month and £319 deposit.
'Our mission is to help make the leap to electric cars easy for UK drivers,' said Damien Dally, managing director at Leapmotor UK.
'We've decided to act now because we want to give customers clarity, confidence, and immediate savings – and make the switch to electric a simple choice.'
Both cars come with a four-year warranty, while their batteries are covered by a separate eight-year guarantee.