“Consumers are still waiting to learn which vehicles will qualify, how much financial support will be available and when the grants will take effect.”
Labour’s electric car grant scheme comes as Chinese EV brands flood the UK market, with the launch of cheap models from businesses including BYD, Chery and Jaecoo.
While the grants will offer discounts on electric cars worth up to £37,000, the Department for Transport officials do not intend to extend the subsidies to Chinese-made cars due to the industry’s reliance on fossil fuels.
Lilian Greenwood, the transport minister, this week said: “The grant is restricted to those manufacturers that reach minimum environmental standards.
“Frankly, if you generate a lot of the electricity that powers your factory through coal power stations, then you are not going to be able to access this grant.”
The decision prompted a warning from the Chinese embassy, which said it would “resolutely safeguard” the interests of its electric car industry against potential discrimination.
The world’s largest EV maker, BYD, said it planned to apply for the discount scheme despite the likelihood it would be rejected.
The discounts by Leapmotor threaten to fuel a price war for battery-powered cars in the UK, which could mirror a similar battle in China.
