Government launched Electric Car Grant without SMMT involvement

The Society of Motor Manufacturers and Traders has welcomed the Government's Electric Car Grant but has concerns about the "lack of clarity".

Any support for the new EV market is positive but the fact that it will "help some but not all OEMs" is not ideal, according to SMMT chief executive Mike Hawes in a report by AM's sister title Fleet News.

The £650m scheme has two levels of state subsidy for buyers of new EVs with an RRP of below £37,000, depending on the carmaker's sustainability standards.

The SMMT expects around two thirds of EVs priced below the £37,000 ceiling to qualify for the grant, based on the criteria set out by Government.

More than 50 models currently in the market might potentially be eligible.

OEMs must submit their EVs to the scheme for approval before any grants can begin. The electric car grant (ECG) requires manufacturers to have committed to a verified science-based target (SBT) for emissions and have embodied carbon scores below a certain threshold.

Where the battery was made and where the car was assembled are contributory factors, to consider data on each country's use of sustainable energy. This may penalise products built in China and South Korea where fossil fuels are heavily used.

The ‘greenest’ vehicles in band one will receive up to £3,750, with band two vehicles receiving up to £1,500.

Some manufacturers are getting ahead of the curve by offering their own discounts to help entice buyers now. Brands such as MG, Leapmotor and GWM have already put self-funded 'grants' in place to help private buyers make the switch to electric.

MG's commercial director Guy Pigounakis recently highlighted that customers have stopped buying low-priced EVs since the Electric Car Grant was announced as they are waiting for the grant to come into effect, and this has driven some OEMs to act now.