Chinese electric car brands could make one move as a result of Labour’s new EV grant rule introduced this July. Labour has already admitted Chinese-built electric cars will not qualify for the new EV subsidy, which offers up to £3,750 off brand new vehicles.
Last week, Transport Minister Lilian Greenwood explained that she did not expect Chinese models to be eligible for the £650million scheme. The news was met with fury by Beijing officials who called on the UK to provide an open, fair, just and non-discriminatory trading environment. Experts at Cazoo have now tipped Chinese manufacturers to fight back against the decision and launch an “even more aggressive” pricing strategy to compete with Western brands.
Speaking to the Express, Barry Judge, CEO at Cazoo, said: “Vehicles made in China do not currently qualify for the grant. This is because only manufacturers that pass the Government’s rules on environmentally sustainable manufacturing practices are eligible for the grant.
“We have seen Chinese firms such as BYD enter the market in recent years, and they are now a significant part of the secondhand market. However, Western brands still dominate the top ten fastest-selling secondhand EVs on our platforms.
“In fact, some of the cheapest EVs on the market are from European manufacturers. For example, Dacia – a now well-established Romanian brand – offers its Sprint EV model for under £15,000 new. Fiat offers its popular 500e model around the £25,000 mark.
“It is possible that some brands could reduce the new price of some of the EVs that are slightly above the threshold to below £37,000, meaning they qualify, making the savings even greater for consumers.
“In addition, it is also possible that the Chinese brands become even more aggressive in their pricing. This will all mean a broader range of more affordable EVs in the market.”
The fightback appears to have already started, with many major Chinese brands already knocking money off price tags. Great Wall Motors (GWM) has confirmed a new Green Grant which will see £3,750 taken off their Ora 03 purchases.
Leapmotor is also set to offer £3,750 off the C10 SUV, bringing the model down to £32,750. Meanwhile, road users can now enjoy a £1,500 discount on a new MG S5 EV or MG4 EV.