Car manufacturers reducing prices on electric vehicles by up to £10,000 to outcompete a newly introduced grant
The UK government's new Electric Car Grant (ECG), launched on July 16, 2025, is designed to incentivise the purchase of environmentally friendly and sustainable electric vehicles (EVs). However, the grant excludes EVs that do not meet specific environmental and manufacturing sustainability criteria.
While the grant does not explicitly list Asian-produced EVs that are ineligible, the eligibility rules imply that many such vehicles could be excluded. To qualify, vehicles must be priced at £37,000 or under, have zero tailpipe emissions, a minimum battery range of 100 miles, at least an 8-year battery warranty, and be manufactured by companies with verified science-based sustainability targets.
The ECG eligibility is assessed on a vehicle-by-vehicle and variant-by-variant basis by the UK Department for Transport and the Vehicle Certification Agency. This means that any Asian-produced EV that does not have the required approvals or sustainability credentials will not qualify for the grant.
Hyundai, MG, and Great Wall Motor (GMW) have already launched their own discounts on their EV models, likely in anticipation of their cars being denied access to the ECG. Hyundai is offering a £3750 discount on its new Inster hatchback, lowering its price to £19,755. The MG 4 EV, previously named the Funky Cat, now qualifies for a £3750 discount. The Ora 03 hatchback by Chinese firm Great Wall Motor also qualifies for a £3750 discount, reducing its price to £21,245.
However, other Hyundai EVs such as the Ioniq 5, Ioniq 6, and Kona Electric have had their prices reduced by £1500 each. The Alfa Romeo Junior Elettrica, on the other hand, now has a £1500 discount, lowering its price to £32,405.
The ECG is backed by £650 million of government funding and offers discounts of up to £3750 on new electric cars. The scheme focuses on incentivizing vehicles that align with UK environmental and manufacturing sustainability goals rather than excluding brands based solely on origin.
If you want to know specific Asian-made models that are or are not eligible for the ECG, you would need to check the official updated list of approved vehicles released by the UK government or examine manufacturers’ sustainability certifications and vehicle eligibility applications for the ECG.
In conclusion, Asian-produced EVs will not be eligible for the UK Electric Car Grant if they exceed the £37,000 price cap, lack verified sustainability credentials, or do not meet the vehicle criteria mandated by the grant scheme. No definitive public list of excluded Asian-produced models is currently published, but the grant criteria strongly affect eligibility beyond simply origin.
[1] UK Government's ECG Eligibility Criteria [2] UK Government's List of Approved Vehicles for ECG [3] Manufacturer's Sustainability Certifications and ECG Eligibility [4] UK Department for Transport and Vehicle Certification Agency's ECG Approval Process
- Given the eligibility rules for the UK Electric Car Grant, expensive Asian-produced EVs or those lacking in verified sustainability credentials may not qualify for the grant.
- In anticipation of their cars possibly being denied access to the ECG, several car manufacturers like Hyundai, MG, and Great Wall Motor have announced discounts on their electric vehicle models.
