UK Government to Announce Eligible Models for Electric Car Grant on August 11

Car buyers in the UK are eagerly awaiting the announcement of which models will qualify for the government’s new Electric Car Grant (ECG) on August 11. The Society of Motor Manufactures and Traders (SMMT) boss, Mike Hawes, revealed this information during a briefing on the latest automotive manufacturing figures.

According to Hawes, approximately one third of electric cars on the market are expected to meet the criteria set out by the government to qualify for the grant. This criteria includes a £37,000 cap for qualifying models, as well as science-based targets related to emissions and manufacturing location.

If a car meets the requirements, it could receive a grant of either £1500 or £3750. Early projections suggest that around two-thirds of EV model ranges with a sub-£37,000 model may be eligible for the grant.

While Hawes acknowledged that any support is beneficial, he expressed concerns about the ECG potentially favoring some manufacturers over others. The SMMT had advocated for VAT cuts on EVs sold to private buyers as a more targeted form of support.

Despite concerns about potential disadvantages to certain regions and manufacturers, Hawes believes that the ECG aims to promote sustainability goals beyond zero tailpipe emissions. The government has also expressed interest in supporting local manufacturing if feasible.

However, Hawes noted that the likelihood of foreign car makers investing in UK EV manufacturing due to access to the ECG is minimal, as the allocated funds may be depleted before production can be scaled up.

Addressing the availability of the ECG to business buyers, who already receive EV subsidies through favorable BIK tax rates, Hawes stated that the government’s goal is to increase the adoption of EVs on the road, including in fleet vehicles.