By FREDA LEWIS-STEMPEL
Drivers will be told which EV models will be eligible for the government's new Electric Car Grant (ECG) in the next couple of weeks, This is Money can exclusively reveal.
While the Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes reportedly informed a press briefing on Wednesday that the Government will announce the EVs receiving subsidies on 11 August, the Department for Transport has told us that this is simply an 'administrative date', and is not when a list will be made public.
Instead, a spokesperson on behalf of the department explained car buyers will be given a list before this date so they know which EVs to snap up at a discounted price.
The DfT also told This is Money that they are processing applications as fast as manufacturers can file them.
While the initial list of eligible models will be made public early next month, more will be announced shortly after to take into account later applications from brands.
It means drivers could be forced to wait even longer to get a comprehensive quota of eligible EVs.
A DfT spokesperson told This is Money: 'We expect dozens of models to be eligible for the electric car grant, which will provide a substantial boost for the industry and save drivers thousands of pounds.
'We want the discounts to become available to drivers as soon as possible, and we are engaging extensively with vehicle manufacturers and have published guidance to help them apply as easily as possible.'
The Department for Transport has said that a list of EVs eligible for the government's new Electric Car grant (ECG) will be made available 'as soon as possible' and before the 11 August 'administrative' date that's been wrongly banded about
There are around 150 new EV models available to car buyers.
However, only those priced at £37,000 or under will qualify for Labour's ECG.
On top of the price tag criteria, electric models must meet stringent science-based emissions targets to prove that both the car and battery manufacturing is as sustainable as possible.
The SMMT's Mike Hawes told press he expects a third of the EVs on the market to receive grants, based on the extensive qualifying criteria.
Depending on how sustainable each model is will determine whether it qualifies for the full £3,750 grant or only for the lower £1,500 grant.
There has been widespread criticism of the grants as the government chose not to release a list of eligible manufacturers and models from the offset.
Instead, it has requested manufacturers apply to the scheme without knowing if their EVs will qualify. Some have claimed they are still wading through bureaucracy to find out.
The SMMT briefing also revealed that the automotive industry was not consulted on the ECG ahead of its announcement - something that senior figures at Chinese car giant MG also relayed to This is Money on Tuesday.
There are around 150 new EV models available to car buyers, but only those priced at £37k or under (like the Renault 5 E-Tech pictured) will qualify for the government's ECG. They also have to meet stringent sustainability criteria, with the most sustainably produced models getting the full £3,750 and those made less sustainably getting £1,500 or nothing
The trade body has also voiced its disappointment that denying some manufacturers and models grants will make 'the route to Zero Emission Vehicle mandate compliance worse' for those brands.
The mandate demands mainstream makers meet increasing annual sales share thresholds for EVs - in 2026, this is a minimum of 28 per cent for cars and 16 per cent for vans.
Hawes told journalists that, while 'any support is the right thing', the fact that the grant 'will help some but not all manufacturers' isn't a good thing.
It's been reported that Chinese and South Korean manufacturers will not qualify for the grants, which would take out a significant chunk of the cheap end of the EV market, removing brands including MG, BYD and Kia.
While some Chinese EV makers have released their own electric car grants because it looks likely Chinese EVs won't qualify for the government's, BYD has refused, calling the grants 'stupid'
Preempting their exclusion, Chinese car makers have already announced their own 'electric car grant' discounts.
MG is currently offering £1,500 off two EV models (the MG S5 EV and MG4 EV), GWM slashing £3,750 off its Ora 03 EV and Leapmotor trimming prices by £1,500 to £3,750 for its two UK-available EV models.
BYD, however, is not offering its own EV grant and has dismissed the scheme entirely, dubbing it 'stupid' and 'too little, too late' from UK ministers.
Executives at the world's largest EV maker also said that grants will act like a 'drug' that will hurt the market in the long run.
They added that Europe can't fight Chinese EVs forever.
However the SMMT doesn't believe that the ECG is intended to hinder a particular manufacturer or region.
He said ministers have formulated criteria that only benefits 'products with broader sustainability goals, not just zero tailpipe emissions'.
He also pointed out that 'government has said it will look to support local manufacturing if possible', and added that he believes the ECG 'will be a success, as consumers respond to carrots'.
The DfT has told This is Money that suggestions British car makers will be treated differently is untrue and that 'all products are assessed under the same framework'.
