MG acted on EV order slowdown caused by Electric Car Grant uncertainty

MG Motor UK stepped in with its own £1,500 discount after electric car orders under £37,000 stalled following confusion over the new Electric Car Grant.

Commercial director Guy Pigounakis said MG dealers saw EV order activity “quite literally stop” within 24 hours of the Government’s Electric Car Grant announcement.

Customers were not only hesitating but also cancelling existing orders, telling retailers they would return once the grant’s details were clear.

Pigounakis said: "We decided that we can't have that situation continue.

"We had to take some action.”

MG introduced a £1,500 incentive for all MG4 and MG5 private retail customers earlier this week, filling the gap while the Government finalises its own scheme.

Pigounakis expects more brands to follow suit in the coming days.

Leapmotor, GWM UK and Alfa Romeo have already launched their own discount schemes.

Pigounakis explained that MG has submitted its application for the new ECG but has low expectations for a fast turnaround.

“If we have any response back inside three months, it will be a miracle,” he said. “We obviously cannot be out of the market for the next three months. It's also a realistic possibility we won't get a grant anyway, so we’ve chosen to move now.”

Grant uncertainty could hit September EV sales

Although the Government has stated that retailers will be able to process grant discounts online from August 11, many carmakers may not receive confirmation of which models are eligible until late August.

This could affect stock positioning and advertising just ahead of the crucial September plate-change period, when more than 50,000 new EVs were registered last year.

Pigounakis said it is becoming increasingly likely that few manufacturers will be able to sell vehicles under the official grant scheme in time for the new registration month.

That could leave retailers scrambling to offer incentives of their own, risking inconsistent messaging and added pressure on margins.

Retailers are now calling for urgent clarification to avoid missed targets and lost EV momentum during one of the busiest periods in the calendar.