
New cheapest EV in Britain revealed as Tesla rival knocks £1,500 off price of compact city car
5
The Leapmotor T03 city car is now on sale for just £14,495
5
That makes it £500 cheaper than the Dacia Spring
Credit: Newspress
That makes it £500 cheaper than the
The price drop applies immediately across the UK as Leapmotor looks to get ahead of the
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.
Read more on Motors
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.
Most read in Motors
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.
'It swallows up the potholes and the bumps' cries car dealership owner over popular motor brand ideal for the countryside
Even
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,
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.
5
The new price tag of £32,750 puts it well under the Government's £37,000 grant threshold
Credit: Leapmotor
5
But even Transport Secretary Heidi Alexander admitted she doesn't currently drive an electric vehicle herself, citing the cost
Credit: Leapmotor
5
Seven low-cost electric cars expected to benefit from the grant
Credit: Getty
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Irish Examiner
19 minutes ago
- Irish Examiner
EU's von der Leyen: 15% the 'best we could get'
European Commission president Ursula von der Leyen defended the trade deal clinched with United States on Sunday as "the best we could get." A 15% baseline tariff will now apply to all EU exports to the US, with the union agreeing to buy up $750bn worth of US energy and to invest $600bn into the US economy in the years ahead. The deal prevents a massive trade war between the US and the EU. Asked if she considered 15% a good deal for European carmakers, von der Leyen told reporters: "15% is not to be underestimated, but it is the best we could get." The EU committed to purchasing $750 billion worth US Liquefied Natural Gas (LNG) and nuclear fuel over three years. "We still have too much Russian LNG that is coming through the back door," she said. The European Commission has proposed phasing out all Russian gas imports by January 2028. "Today's deal creates certainty in uncertain times, delivers stability and predictability," von der Leyen told reporters before leaving Scotland. Government sources, while welcoming the deal, were cautious and said they would need to see the finer details of the agreement. One senior source said 'nobody was jumping with joy' over the deal due to baseline tariffs, but that it did provide certainty to businesses. Read More Trade war averted as Government cautiously welcomes EU-US deal


RTÉ News
an hour ago
- RTÉ News
EU-US trade deal brings 'temporary stability' but 'unbalanced'
A trade deal clinched by the United States and the European Union will provide temporary stability but is "unbalanced," a French minister has said. The deal reached yesterday in talks between US President Donald Trump and EU chief Ursula von der Leyen in Scotland "will provide temporary stability... but it is unbalanced," Benjamin Haddad, the French minister for Europe, wrote on X. The agreement will see EU exports taxed at 15% in a bid to resolve a transatlantic tariff stand-off that threatened to explode into a full-blown trade war. US President Donald Trump emerged from a high-stakes meeting with European Commission President Ursula von der Leyen at his golf resort in Scotland, describing the deal as the "biggest ever". The moment Trump and von der Leyen announce EU-US trade deal The deal, which the leaders struck in around an hour, came as the clock ticked down on a 1 August deadline to avoid an across-the-board US levy of 30% on European goods. "We've reached a deal. It's a good deal for everybody. This is probably the biggest deal ever reached in any capacity," said Mr Trump. Mr Trump said a baseline tariff of 15% would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals and semiconductors. As part of the deal, Mr Trump said the 27-nation EU bloc had agreed to purchase "$750 billion worth of energy" from the United States, as well as make $600 billion in additional investments. Ms Von der Leyen said the "significant" purchases of US liquefied natural gas, oil and nuclear fuels would come over three years, as part of the bloc's bid to diversify away from Russian sources. Negotiating on behalf of the EU's 27 countries, Ms von der Leyen had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services. "It's a good deal," the EU chief told reporters. "It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic," she said. She added that bilateral tariff exemptions had been agreed on a number of "strategic products", notably aircraft, certain chemicals, some agricultural products and critical raw materials. Ms Von der Leyen said the EU still hoped to secure further so-called "zero-for-zero" agreements, notably for alcohol, which she hoped to be "sorted out" in coming days. Mr Trump also said EU countries - which recently pledged to ramp up their defence spending within NATO - would be purchasing "hundreds of billions of dollars worth of military equipment". 'Best we could get' The EU has been hit by multiple waves of tariffs since Mr Trump reclaimed the White House. It is currently subject to a 25% levy on cars, 50% on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatened to hike to 30 percent in a no-deal scenario. The bloc had been pushing hard for tariff carve-outs for critical industries from aircraft to spirits, and its auto industry, crucial for France and Germany, is already reeling from the levies imposed so far. "15% is not to be underestimated, but it is the best we could get," acknowledged Ms von der Leyen. Any deal will need to be approved by EU member states - whose ambassadors, on a visit to Greenland, were updated by the commission yesterday morning. They were set to meet again after the deal struck in Scotland. Taoiseach Micheál Martin said the agreement will "help protect many jobs in Ireland". The Department of Foreign Affairs welcomed the deal for bringing "a measure of much-needed certainty", but that it "regrets" the baseline tariff. German Chancellor Friedrich Merz rapidly hailed the deal, saying it avoided "needless escalation in transatlantic trade relations". But German exporters were less enthusiastic. The powerful BDI federation of industrial groups said the accord would have "considerable negative repercussions" while the country's VCI chemical trade association said the accord left rates "too high". The EU had pushed for a compromise on steel that could allow a certain quota into the United States before tariffs would apply. Mr Trump appeared to rule that out, saying steel was "staying the way it is", but the EU chief insisted later that "tariffs will be cut and a quota system will be put in place" for steel. 'The big one' While 15% is much higher than pre-existing US tariffs on European goods, which average around 4.8%, it mirrors the status quo, with companies currently facing an additional flat rate of 10%. Had the talks failed, EU states had greenlit counter tariffs on $109 billion (€93 billion) of US goods, including aircraft and cars to take effect in stages from 7 August. Mr Trump has embarked on a campaign to reshape US trade with the world and has vowed to hit dozens of countries with punitive tariffs if they do not reach a pact with Washington by 1 August.


Irish Times
an hour ago
- Irish Times
Trump, Starmer to meet in Scotland, with trade and Gaza on agenda
US president Donald Trump will host British prime minister Keir Starmer at his golf resort in western Scotland on Monday for talks expected to range from their recent trade deal to the worsening hunger crisis in Gaza , the two governments said. Mr Trump, boosted by the announcement of a trade agreement with the European Union late on Sunday, said he expected Mr Starmer would also be pleased. 'The prime minister of the UK, while he's not involved in this, will be very happy because you know, there's a certain unity that's been brought there, too,' Mr Trump said. 'He's going to be very happy to see what we did.' Mr Starmer had hoped to negotiate a drop in US steel and aluminum tariffs as part of the discussions, but Mr Trump on Sunday ruled out any changes in the 50 per cent duties for the EU and has said the trade deal with Britain has been 'concluded.' The two men are expected to travel from Mr Trump's golf resort in Turnberry, on Scotland's west coast, to a second sprawling estate owned by Mr Trump in the east, near Aberdeen. Mr Starmer was heading to Scotland from Switzerland, where England won the Women's European Championship final on Sunday. Casting a shadow over their visit has been the deepening crisis in the war-torn Gaza enclave, where images of starving Palestinians have alarmed the world. Mr Starmer has recalled his ministers from their summer recess for a cabinet meeting, a UK government source said on Sunday, most likely to discuss the situation in Gaza as pressure grows at home and abroad to recognise a Palestinian state. The British leader on Friday said his country would recognise a Palestinian state only as part of a negotiated peace deal, disappointing many in his Labour Party who want him to follow France in taking swifter action. Mr Trump on Friday dismissed French president Emmanuel Macron's plan to recognise a Palestinian state, an intention that also drew strong condemnation from Israel, after similar moves from Spain, Norway and Ireland last year. Mr Trump said he understood Mr Starmer wanted to discuss Israel, adding that while the US would increase its aid to Gaza, it wanted others to join the effort. Ukraine will also be on the agenda. Dozens of Gazans have died of malnutrition in recent weeks, according to the Gaza Health Ministry in the Hamas-run enclave, with aid groups warning of mass hunger among Gaza's 2.2 million people. The war began on October 7th, 2023, when Hamas -led fighters stormed southern Israel, killing 1,200 people, mostly civilians, and taking 251 hostages back to Gaza, according to Israeli tallies. Since then, Israel's offensive has killed nearly 60,000 people in Gaza, mostly civilians, according to Gaza health officials. It has reduced much of the enclave to ruins and displaced nearly the entire population. - Reuters (c) Copyright Thomson Reuters 2025