Trade body ‘not consulted’ about new EV grant | More carmakers cut prices

The Government did not consult with the UK’s automotive trade body, the Society of Motor Manufacturers and Traders (SMMT), ahead of launching its new electric car grant.

SMMT chief executive Mike Hawes welcomed any support for the electric vehicle (EV) market but acknowledged that it was not ideal it would “help some but not all OEMs”.

The Government’s new electric car grant will be worth up to £3,750 off a new battery electric vehicle (BEV).

To qualify for the £650 million scheme, electric cars must have a recommended retail price (RRP) of £37,000 or less, with two levels of grant available depending on the carmaker’s sustainability standards.

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

The electric car grant (ECG) requires manufacturers to have committed to a verified science-based target (SBT) and have embodied carbon scores below a certain threshold.

Vehicles made by manufacturers who have not set an SBT will not be eligible for the scheme, says the DfT. 

The SMMT expects around one third of electric cars on the market to qualify for the grant based on the criteria set out by Government.

Hawes said he understood the ambition, but there is a “lack of clarity”, with the Government suggesting that BEVs made in South Korea and China are likely to miss out on the grant based on their environmental standards.

Skywell and Volvo are latest OEMs to launch own EV grants

Several OEMs have subsequently announced their own money off deals, including Hyundai, MG and Leapmotor, with Skywell UK and Volvo the latest to launch their own EV incentives in response to the delays and uncertainty faced by customers.

The Skywell BE11 72kWh standard range is potentially eligible, at £36,995.

Volvo has announced a £1,500 discount for the EX30, redeemable on cash, Volvo loan and PCP purchases.

David Clark, general manager at Skywell UK, said: “A number of caveats, and requirements have been set by the Government before any vehicle is approved onto the new electric car grant scheme, which has left manufacturers, dealers and customers in limbo. 

“We want to start this process immediately, but we must first gather all the required documentation from Skywell, which could take many months. 

“Consumers need confidence and definitive answers, and we should not subject them to further delays.”

Visiting the UK this week, Rosy He, sales director at Skyworth, Skywell’s parent company, said that previous grants had “worked well” to boost the UK economy and automotive industries.

However, she added: “The recently announced electric car grant comes with a number of restrictions and requirements not seen previously, which may delay Skywell’s participation in the scheme, whilst we gather the required document and request approval. 

“We will of course work with the UK Government, in hope our vehicles can be eligible for the scheme.”

To provide reassurance, Skyworth Group have announced their support of the UK business, by offering UK customers their own £3,750 EV incentive in the interim.

She explained: “We want to show UK customers that we fully support the shift to electrification. We know the Skywell BE11 is a great value proposition and have already seen popularity from family buyers and business users alike across other markets. 

“We also want to remove barriers for UK retail buyers in the shift to electrification with removing the price cap set by the Government to the scheme, therefore allowing both BE11 models to be available for our incentive.”

Until the end of September, UK retail buyers of the Skywell BE11 could already benefit from a £6,000 dealer finance deposit contribution. 

With the newly announced incentive from parent company Skyworth, the BE11 range now starts from £27,245 - for the 72kWh Standard Range. 

The BE11 Long Range with its 86kWh battery - capable of 304miles (WLTP) – is now priced from £30,245 (after incentive and finance deposit are included).