19 hours ago
Just one in eight electric cars qualify for Labour's new grants
Just one in eight electric cars will be eligible for Labour's new grant scheme when it opens on Monday amid ongoing confusion over which models will qualify.
On Monday, the Government began accepting applications for the electric vehicle (EV) grants and will begin payouts to manufacturers from next week.
But at launch, the scheme will only apply to 17 cars sold by Citroen, Renault, Nissan and Vauxhall, with other manufacturers still waiting to find out if their vehicles are eligible.
There are currently more than 130 EV models on sale in Britain, according to the Society of Motor Manufacturers and Traders (SMMT).
Labour's grant scheme applies to new vehicles with a list price of £37,000 or lower. Manufacturers can receive either £3,750 or £1,500 in support, which is passed on to the consumer in the form of a discount.
For a particular model to qualify, manufacturers must submit information about where the car is assembled and where its battery was manufactured, with the upper grant only awarded to those that score the highest for sustainability.
This will rule out cars made in China, where more than 60pc of power is still generated by burning coal, ministers have said. In response, Chinese-owned brands such as BYD, MG and others have slashed their prices to remain competitive.
But Western car makers have complained that they remain in the dark about which models will ultimately qualify until their funding applications have been approved.
EV sales slowed in July as drivers held off from buying in hopes of a later discount.
A Whitehall source said the Government was working through applications as quickly as possible and expected around two thirds of cars priced under £37,000 to be eligible overall.
On Monday, 13 more cars were confirmed as eligible for the £1,500 discount – taking the total to 17.
They include the Renault Megane and Vauxhall Corsa Electric in addition to the previously announced Citroen ë-C3, e-C4, ë-C5 and ë-Berlingo models.
No car has yet qualified for the full £3,500 discount. However, it is understood that the new Nissan Leaf, which will be launched in the spring and made at the company's factory in Sunderland, is expected to be eligible.
Heidi Alexander, the Transport Secretary said: 'With discounts on seventeen car models announced this week alone, we're delivering on our promise to make it easier and cheaper for families to go electric.
'This is about backing drivers, putting money back into people's pockets and creating the jobs and growth that will drive Britain forward, delivering on our Plan for Change.'
Andy Palmer, a veteran car industry executive and founder of Palmer Energy Technology, said: '17 models is a good start, but what we need is the comprehensive list so that consumers can take comfort in being able to make a choice and not wait for models to be drip-fed.
'The longer the list takes to be final, the longer people will hesitate. The brands now available, Citroën, Renault, Vauxhall and Nissan are all solid – so the choices are already consumer friendly in the sub-£37,000 price bracket.'
Dan Caesar, of Electric Vehicles UK, added: 'It's encouraging to see that 17 battery EVs are now even cheaper as a result of the Electric Car Grant. There are the best part of 50 models now under the £37,000 threshold, with some as low as £15,000, and we would hope to see a few more added in short order.
'Looking at the recent data of new and used battery EV sales, appetite and demand are clearly growing, and are only likely to accelerate as the Electric Car Grant begins to gain traction.'
