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Unclear EV Grant Rules Stall UK Electric Vehicle Market

Provisional incentives from manufacturers have emerged pending publication of the Department for Transport’s list of eligible models.

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Overview

  • The government relaunched a £650 million grant this month to offer up to £3,750 off new battery EVs priced under £37,000 but has yet to define qualifying vehicles or environmental standards.
  • The Society of Motor Manufacturers & Traders cautioned that carmakers are “operating in a fog” over eligibility, prompting many buyers to delay purchases and cancel orders.
  • Stuart Masson of The Car Expert warned the ambiguity could trigger up to three months of market paralysis, threatening sales ahead of the key September plate-change period.
  • Manufacturers such as MG Motor UK, Alfa Romeo, Hyundai and Volvo have rolled out their own interim discounts—including a £1,500 grant from MG—to keep customers engaged.
  • The Department for Transport is expected to publish its official list of eligible models imminently, a move set to clarify which vehicles meet the new grant criteria.