It’s three weeks since the Government announced its new electric car grant to incentivise private buyers to move to all-electric vehicles – and now we finally know some of the models to see prices slashed.
It has revealed the first four models to receive part of the £650million electric car grant for models under £37,000 – and they’re all from a French brand.
Citroen is the first manufacturer to have EVs officially pass the Government’s stringent technical and environmental sustainability criteria: The e-C3, e-C4, e-C5 and e-Berlingo van will each receive £1,500 off – the lower Level 2 grant band available.
The ECG discount will be automatically applied from today, 5 August, which Citroen says will mean that ‘six models in its electric passenger car line-up are now priced under £36,000’.
The Government’s ECG offer – which comes three years after the previous government axed its Plug-In Car grant – is tiered so the amount available per vehicle (on or under the £37,000 price cap) will depend on the level of emissions associated with the production of the vehicle; the most sustainable get £3,750, less sustainable models get £1,500.
Those that don’t qualify at all will get £0.
Citroen has four models now available with the Government’s new electric car grant, including the e-C4 (pictured)
Greg Taylor, managing director of Citroen UK, said: ‘At Citroen we want everyone to have the opportunity to make the switch to an electric car.
‘We welcome the support of the electric car grant and are delighted to be the first to have vehicles in our electric range, including the New e-C3, New e-C4, New e-C5 Aircross and e-Berlingo, approved and eligible.’
With the £1,500 ECG applied, the new e-C3 is now available from £20,595, the new e-C3 Aircross starts at £21,595, and the New e-C5 Aircross can be acquired from £32,565. The e-Berlingo (M versions only) van will now cost from £29,740.
While the four models have qualified for the Level 2 £1,500 support it is not clear why they did not receive the full Level 1 £3,750 support.
The Department for Transport confirmed to This is Money that Citroen had submitted the required evidence and demonstrated their vehicles meet the second highest environmental sustainability standards.
But when pressed why Citroen failed to meet the criteria to receive the full £3,750 grant amount the DfT said it couldn’t comment on individual manufacturer’s specific applications.
The electric car grant has received a lot of backlash for its head-scratching sustainability criteria that sees manufacturers rewarded for ‘the highest manufacturing sustainability standards’.
The Government says its framework for sustainably produced cars ‘is in recognition of the need to address embedded carbon emissions across a vehicle’s lifetime, as well as tailpipe emissions’.
At a minimum this means the manufacturer must hold a verified science based target, verified by the independent Science Based Targets Initiative.
Emissions from vehicle production are then assessed against the carbon intensity of electricity grid in the country where vehicle assembly and battery production are located.
The new Citroen e-C3 is now available from only £20,595 making it one of the most affordable Evs on the market
The e-C4 X will cost from £27,215 with the £1,500 discount applied – a family offering that won’t break the bank
The ë-Berlingo (M versions only) van will start from £29,740 and offer people a very practical car for an affordable price
The New Citroen C5 Aircross electric version will come with 422 miles of range and will now cost £32,565
Instead of releasing a list of manufacturers and models that qualify alongside the announcement by Transport Secretary Heidi Alexander in July, the Government has asked car makers to apply for qualification and is processing applications as fast as manufacturers can file them.
This has led to a significant number of automakers releasing their own grants – of between £1,500 and £3,750 – until they hear whether their models will receive an official Government subsidy.
It’s widely suspected that no Chinese EV maker, or South Korean, will be granted either Level 1 or Level 2 subsidies after Transport Minister Lilian Greenwood told BBC Radio 4’s Today programme: ‘We don’t expect any cars that are assembled in China to be eligible for this scheme.’
Volvo’s sustainability report: Many manufacturers publishes a sustainability report annually but despite high levels of environmental standards this doesn’t mean the Government’s elusive criteria will be met
While EVs have zero tailpipe emissions, there’s currently the downside of raw material mining for battery production which is one of the areas the Government will be looking into as it accesses manufacturer’ sustainability practices
While this remains up in the air, the Government has confirmed that ‘more models are to follow in the coming days and weeks’ off the back of the Citroen announcement.
Transport Secretary Heidi Alexander said: ‘With the first four models approved today and more to come over the next few weeks, this summer we’re making owning an electric car cheaper, easier, and a reality for thousands more people across the UK.’
RAC head of policy Simon Williams also said that ‘it’s a real boost for electric.’
He added: ‘It’s great to see the first qualifying models announced for the Government’s new electric car grant.
‘Not only does this mean more drivers will benefit from the lower cost of running an electric vehicle, but it’s hopefully the sign of more to come from other manufacturers in the weeks ahead.’
