Car Brands Launch Own Discounts Amid EV Grant Confusion
Britain’s new EV grant scheme was meant to streamline support for electric car buyers — but confusion around eligibility and delays in rollout have triggered a surprise response from the manufacturers themselves.
Brands including MG, Hyundai, Volvo, and Leapmotor are now offering their own £1,500–£3,750 discounts on popular electric models to fill the gap left by inconsistent or unclear government guidance. These include the MG4, Kona Electric, Ioniq 5, and the Chinese-made To3 city car, all of which saw price drops in the second half of July.
Industry insiders say the Department for Transport underestimated the complexity of rolling out a new incentive structure. Unlike the previous plug-in grant, the new scheme applies only to models that meet strict sustainability thresholds and manufacturing disclosures — criteria that some brands claim were never clearly communicated.
“We were told our cars would qualify,” said a Hyundai UK spokesperson. “Then two weeks later, we were informed otherwise. It left both our dealerships and customers in limbo.”
As a result, several manufacturers are now bypassing the scheme altogether and applying equivalent price cuts at the point of sale. MG’s UK director, Guy Pigounakis, said: “If the government’s not ready to help the transition, we will. We need to keep the market moving.”
The decision comes at a time when the used EV market is also flooded with ex-lease vehicles, causing downward pressure on prices. Offering up-front discounts may help prevent demand from collapsing further — particularly with high interest rates discouraging buyers from financing new vehicles.
Dealers have also started bundling in home charger installations, extended warranties, and service packages to sweeten the deal. But despite the improvisation, many in the industry are frustrated by the lack of consistency.
“Policy uncertainty is the enemy of confidence,” said Steve Gooding of the RAC Foundation. “If consumers aren’t sure what the rules are, they’ll sit on their wallets.”
The Department for Transport has promised further clarification “in the coming weeks,” but as of late July, it’s clear that the transition to electric motoring is being pushed forward less by Westminster and more by the carmakers themselves.