MG slashes EV prices by up to £1500 in response to government grant
Chinese car manufacturer MG has announced a £1500 discount on its MG4 and MG S5 EVs in the UK after the introduction of the new Electric Car Grant stalled sales.
The ECG was announced by the Department for Transport last week, promising discounts of either £1500 or £3750 on new electric cars priced under £37,000.
However, the Government has yet to reveal the eligibility criteria for the grant, leaving buyers confused as to which models will qualify – and therefore slowing sales of new EVs. Exclusive What Car? research found that one in five (21%) in-market EV buyers have delayed their purchase to wait for details.
The discount introduced by MG will aim to curb the damage caused by the introduction of the ECG by encouraging drivers to buy before the full criteria is announced.
It is understood that, in order to qualify for the ECG, cars will have to reach certain carbon emission targets, which depend on the car company and the country where the car and its EV batteries are produced. This means that cars produced in China may not receive the grant at all, or may only receive the smaller discount of £1500.
Manufacturers must also be signed up to the Science Based Targets Initiative, an organisation which encourages companies to reduce their carbon emissions. MG is not signed up to this initiative.
MG is not the first manufacturer to attempt to get ahead of the European market with its own EV discount. Chinese firms Leapmotor and GWM both announced their own grants of up to £3750 on electric models this week. Alfa Romeo recently announced a discount of £1500 on its Junior Elettrica range, which is built in Poland. That model will now start at £32,405 with the EV Grant included.
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