Leapmotor launches own EV grant as potential barriers for Chinese brands emerge

Chinese car maker Leapmotor is bypassing the UK government’s new EV grant scheme by launching its own self-funded incentive, offering British buyers up to £3,750 off its electric models - as uncertainty grows over whether Chinese-made vehicles will qualify for state support.

The new ‘Leap-Grant’ initiative provides immediate discounts across the brand’s UK lineup with the Leapmotor C10 family SUV receiving the full £3,750 grant, bringing its on-the-road (OTR) price down to £32,750.

The compact T03 city car is now priced at £14,495 OTR following a £1,500 discount – making it what Leapmotor claims to be the most affordable five-door EV currently available in the UK. Both models also come with 0% APR finance.

Leapmotor said consumers are still waiting to learn which vehicles will qualify under the Electric Car Grant, how much financial support will be available, and when the grants will take effect. This has left many potential car buyers in a state of limbo - unsure of when or how to take advantage of the promised incentives.

“We want to give customers clarity, confidence, and immediate savings - and make the switch to electric a simple choice,” said Damien Dally, managing director of Leapmotor UK. “The market can’t afford to wait around in uncertainty.”

Leapmotor’s announcement comes just days after the UK Government unveiled a new £650 million EV grant scheme, which offers up to £3,750 off battery electric vehicles priced under £37,000. However, the scheme ties eligibility to strict sustainability standards, including verified science-based targets (SBTs) and low embodied carbon scores in the manufacturing process.

Speaking on BBC Radio 4’s Today programme on Wednesday (July 16), transport minister Lilian Greenwood confirmed that vehicles made in factories powered by coal - characteristic of many Chinese operations - are unlikely to qualify.

“The grant is restricted to those manufacturers that meet minimum environmental standards,” she said. “Frankly, if you’re powering your factory with coal, you won’t qualify for this scheme.”

AM sister title Fleet News reports that the government’s stance has triggered concern among Chinese brands, with the Chinese embassy warning that such exclusions risk violating World Trade Organisation (WTO) rules.

“The UK should create a fair, non-discriminatory environment for investment,” a spokesperson told Fleet News. “China is closely following the situation and will firmly protect the legitimate rights and interests of its companies.”

The potential exclusion is particularly significant given the rapid rise of Chinese EV brands in the UK market. BYD, MG, Jaecoo and Omoda are making major inroads in the fleet sector, with BYD’s fleet sales alone up 643% in the first half of 2025. Together, emerging Chinese brands now hold nearly 8% of the UK’s true fleet market.