Overview

• The scheme provides up to £3,750 off new electric vehicles priced under £37,000 to boost UK EV uptake ahead of the 2030 petrol and diesel sales ban.
• Transport Minister Lilian Greenwood confirmed vehicles assembled in China fail the grant’s low-carbon production standards due to reliance on coal-powered factories.
• A Chinese embassy spokesman warned the policy breaches WTO non-discrimination rules and vowed to defend the rights of Chinese automakers.
• Major brands including BYD and MG are expected to be barred, although BYD says it will apply and may shift some production to Europe to meet criteria.
• The grant aligns with broader EU efforts to tie subsidies to environmental performance and curb imports of carbon-intensive electric vehicles.