The cost of some new electric cars could come down by as much as £3,750 due to new grants being introduced by the government.
In a bid to persuade drivers away from petrol and diesel vehicles, discounts of between £1,500 and £3,750 will apply to eligible vehicles costing up to £37,000.
Manufacturers are in the process of applying for the funding and the most environmentally friendly vehicles will be the ones able to claim the biggest reductions, according to the Department for Transport (DfT).
The cars are hoped to appear on forecourts within the next few weeks, and they'll have the discount already pre-applied. The move comes ahead of the impending ban on the sale of new fully petrol or diesel cars from 2030. It's understood the government will publish a list of eligible vehicles on 11 August.
Nearly 50 new electric car models are understood to be likely to qualify if they meet the sustainability criteria, including the Dacia Spring, Fiat 500e, Kia EV3 and Volvo EX30.
Rather than waiting for the government to decide whether they can be included, several manufacturers have decided to jump in and offer their own discounts regardless, including Great Wall Motors and Leapmotor making a new MG S5 EV or MG4 electric car cheaper now by £1,500. Alfa Romeo is another brand getting ahead of the EV grant. Kia is also offering a £3,750 discount on the Kia EV3 Air through its new electric car allowance scheme.
The government initiative forms part of the UK’s Plan for Change, to help households save money while accelerating the switch to zero-emission vehicles.
The grants are likely to reduce the purchase cost of the eligible electric vehicles for a total period of three years and are funded through a £650m scheme. The government is also going to invest £63m to fund more EV charging points across the country.