Rival Chinese manufacturers and MG expand incentives for electric vehicles, amid doubts about upcoming government grants
UK Government's Electric Car Grant Excludes Chinese-Built EVs
The UK Government has unveiled a new Electric Car Grant worth £650 million, aiming to accelerate the switch to electric vehicles (EVs). However, the scheme excludes electric vehicles built in China and other parts of Asia, primarily due to concerns about their environmental impact during production.
From July 21, 2025, the grant offers up to £3,750 off the price of a new battery-electric car with a retail price below £37,000, based on its carbon footprint from manufacture to showroom. UK-produced EVs with lower embedded emissions are favoured for the highest grant band, while many Chinese-built EVs do not meet the stringent criteria, making them ineligible.
As a result, popular brands like MG, Great Wall Motors (GWM), and Leapmotor are unlikely to qualify for the grant and have introduced their own separate discount schemes to offset the loss. For instance, MG is offering a £1,500 discount on the MG4 EV and MG5 EV for private buyers, while Leapmotor has reduced the price of the compact T03 city car by £1,500 to £14,495. Leapmotor's larger C10 SUV has also been discounted by the full £3,750.
GWM UK has introduced a £3,750 'Green Grant' for its ORA 03 models to compensate for the lack of government support. The ORA 03's starting price has been reduced to £21,245 on the road due to the 'Green Grant'.
Guy Pigounakis, Commercial Director at MG Motor UK, stated that MG is committed to introducing affordable electric-only models. Final details regarding the environmental standards for eligibility have not been announced yet.
The Government's new grant replaces earlier subsidy schemes and is part of the UK's strategy to combat climate change by promoting the adoption of low-emission vehicles. Leapmotor's UK distributor, Stellantis, claims the cuts are to "avoid delays" caused by the Government's grant approval process.
Sources: [1] BBC News, "UK electric car grant to exclude Chinese-made vehicles", 2025 [2] Autocar, "MG offers £1,500 discount on MG4 EV and MG5 EV", 2025 [3] Auto Express, "Leapmotor T03 price cut undercuts Dacia Spring", 2025 [4] Greenpeace, "UK Electric Car Grant excludes Chinese-built EVs", 2025 [5] The Telegraph, "GWM UK introduces £3,750 'Green Grant' for ORA 03 models", 2025
- Despite the UK Government's Electric Car Grant, some popular brands like MG, Great Wall Motors (GWM), and Leapmotor are not qualified as many Chinese-built electric vehicles do not meet the criteria due to concerns about their environmental impact during production.
- In response to their exclusion from the UK Government's Electric Car Grant, MG has introduced a separate discount scheme, offering £1,500 off the price of the MG4 EV and MG5 EV for private buyers.
- Leapmotor has also reduced the price of its compact T03 city car by £1,500 and the larger C10 SUV by the full £3,750 to compensate for the lack of government support.
- GWM UK has introduced a £3,750 'Green Grant' for its ORA 03 models to compensate for the exclusion from the UK Government's Electric Car Grant, reducing the starting price to £21,245 on the road.
