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News

The UK’s New Electric Car Grant: Bargain or Bureaucracy?

Electric cars just got a little more affordable in the UK—at least on paper. The government has unveiled its new Electric Car Grant (ECG), dangling discounts of up to £3,750 on qualifying zero-emissions cars. But as with any incentive scheme, the devil is in the details, and this one is already proving complicated enough to make even seasoned EV shoppers scratch their heads.

A Two-Tier System

The ECG is split into two bands. Cars that pass the government’s strictest environmental tests qualify for the full £3,750, while those that just about meet the mark get £1,500. Roughly a third of models under the £37,000 price cap won’t see a penny. That leaves the majority of sub-£37k EVs in play, but not without caveats.

Crucially, it’s not just the sticker price that determines eligibility. The grant leans heavily on the “green credentials” of both the manufacturer and the vehicle. That means:

  • The brand must have signed up to Science-Based Targets (SBT) for carbon reductions.
  • Each model is assessed on where it was built, where the battery was assembled, and the carbon intensity of those countries’ electricity grids.

In short: your car’s passport matters almost as much as its price tag.

Winners and Losers

Some familiar names are in luck. Auto Express’s 2025 Car of the Year, the Skoda Elroq, starts at £31,510 and qualifies, even in higher trims, thanks to how the government scores powertrain variants. But jump too high—into the Elroq vRS, for instance—and you’re out.

Volkswagen’s ID.3 Pro also squeezes in under the £37,000 threshold. But option it like a press car—every bell, every whistle—and you’ll blast past the £42,000 ceiling the government has set for fully specced models. Cross that line, and the discount vanishes.

Interestingly, even pricier cars like the Skoda Enyaq can qualify—despite a £39,010 starting price—because the entry-level “60” powertrain also lives in cheaper models. Meanwhile, Britain’s best-selling EV, the Tesla Model Y, is completely excluded because its base price sits above the limit.

China in the Crosshairs

The ECG also has geopolitical undertones. By tying eligibility to the carbon intensity of manufacturing nations, the scheme all but sidelines Chinese-built EVs, given China’s reliance on coal power. Some exceptions exist—like the Citroën e-C3, which manages to snag the smaller £1,500 grant—but brands like BYD have already walked away, instead dangling perks like five years of free maintenance or boosted battery warranties.

Industry Fallout

Predictably, the industry is reacting. Brands like Volvo, Fiat, Hyundai, MG, and Skoda have cut prices, while Kia has fattened its deposit contributions to mimic the grant. Manufacturers are nervous that buyers will stall purchases while waiting to see which models qualify, so they’re stepping in with their own carrots.

The ECG is funded to the tune of £650 million, enough for about 173,000 cars at the maximum subsidy. That’s half of last year’s UK EV registrations. In practice, though, the complicated tier system will stretch that pot further by keeping a chunk of buyers out of the top band.

Abuse and Oversight

One concern is that manufacturers or leasing companies might game the system by pre-registering cars or misallocating grants. The Department for Transport insists it’s on watch, requiring leasing firms to provide proof of a real end customer and reserving the right to claw back money from manufacturers caught playing fast and loose.

The Bottom Line

If you’re in the market for an EV under £37k, the Electric Car Grant could save you real money. But the scheme is complicated, exclusionary, and—as critics point out—designed as much to shape the market as to support buyers. By rewarding manufacturers with robust sustainability commitments and penalizing cars from carbon-heavy supply chains, the ECG is both carrot and stick.

In other words, it’s not the free-for-all discount that the old Plug-in Car Grant once was. Instead, it’s a sharp reminder that the UK wants its EV market not just bigger, but greener.

Source: Auto Express

News

Grande Panda Fever: UK Orders Open After Record Interest

Remember the old Fiat Panda? The unapologetically boxy little brick that buzzed around Europe in the 1980s, often carrying more goats than passengers in some parts of Italy? Well, it’s back—sort of. Meet the Grande Panda, FIAT’s brand-new city car, a small car with big ambitions and even bigger expectations.

FIAT has officially opened UK orders, and if early numbers are anything to go by, Britain’s car buyers are already smitten. Thousands of people have signed up for “tell me more” emails before the car has even touched UK soil. Dealers are reporting floods of curious punters wandering into showrooms asking about it. And to fuel the hype even more, FIAT is rolling the car out on a nationwide “preview tour” from 4th September to 11th October, where the Grande Panda will be shown off like a pop star on a comeback tour.

And you know what? The hype might actually be justified.

Retro Roots, Modern Swagger

The Grande Panda was designed in FIAT’s Centro Stile in Turin, which means it’s dripping with Italian flair but hasn’t gone full Gucci handbag. Instead, it riffs on the 1980s original with crisp, blocky lines and a refreshingly uncluttered interior. It’s smart, it’s practical, and it doesn’t feel like it’s trying too hard. Think less “look at me” and more “I’ll quietly look cooler than your crossover.”

Judges seem to agree. It’s already scooped up a trio of gongs: Best Small Car from Autocar, Supermini of the Year from Auto Express, and the rather charming Most Eagerly Awaited Electrified Car from Eco Car. Not bad for something that hasn’t even properly landed yet.

Power to the Panda

Buyers get two flavours: fully electric or hybrid. The EV comes with a 44kWh battery and 83kW motor (that’s 113 horsepower in old money), good for 199 miles of WLTP range—more than enough to handle the Tesco run, the school drop-off, and the occasional road trip to the seaside without breaking a sweat.

If you’re not ready to cut the petrol cord entirely, the hybrid uses a 1.2-litre, 3-cylinder turbo with a 48V battery and a slick 6-speed dual-clutch gearbox, delivering 110 horsepower. It’s not going to snap your neck in a traffic light drag race, but it’ll sip fuel and smile while doing it.

Value With a Wink

Here’s the kicker: prices start at just £18,035 for the hybrid and £21,035 for the EV. Throw in FIAT’s newly reintroduced £1,500 E-Grant, and the electric Panda suddenly looks like one of the best-value EVs on sale. Trims range from the cheekily named Pop to the fully loaded La Prima, while the EV can even be had in the socially conscious (RED) edition.

The Grande Panda isn’t pretending to be a hot hatch or a premium SUV. It’s a car for the real world: compact enough for city streets, clever enough for family life, and stylish enough to pull off a bit of retro cool.

If FIAT’s early success is any indicator, the Grande Panda might just become the new darling of Britain’s roads—just like its 1980s ancestor once was. Except this time, you won’t have to push it up the hill when it rains.

Source: Fiat

News

Chery Arrives in the UK: VW’s Value Crown Is Officially Under Attack

The British car market has a new arrival, and it hasn’t come quietly. At the O2 in London – an arena more accustomed to dodgy ‘90s comeback tours and overpriced pints – Chinese giant Chery officially launched its self-titled brand into the UK. The target? Volkswagen. Yes, the people who gave us the Golf, the Tiguan, and dieselgate.

If the name sounds like it was plucked straight from a pick-and-mix bag, that’s because it is: Chery is supposedly derived from “cheery.” But behind the cutesy branding is one of China’s biggest carmakers, a company that shifted nearly 20,000 Omoda and Jaecoo SUVs in the UK already this year. Now, with Chery-badged cars, it’s going after the mainstream.

The Opening Gambit: Tiggo Time

First up are two SUVs: the Tiggo 7 and Tiggo 8. The names sound like cheap Bluetooth speakers, but the pitch is serious.

  • Tiggo 7: A family SUV gunning for the Volkswagen Tiguan. Its ace card? Being the UK’s cheapest plug-in hybrid at £29,995. Can’t be bothered with charging? The petrol kicks off at just £24,995 – a full fiver cheaper than a mid-spec iPhone.
  • Tiggo 8: A bigger, seven-seat SUV. Price tag? Just over £28,500 for the petrol, or £33,500 if you want the plug-in hybrid. That makes it the cheapest full-size seven-seater in the UK. Yes, cheaper than buying seven train tickets.

Both land in September, fresh from 25 shiny new dealerships.

The Range to Come

Chery isn’t messing around. After the 7 and 8, there’s a smaller Tiggo 4 crossover (around £20k) and the Tiggo 9, a posh, PHEV-powered flagship SUV topping £40k. All were on display at the O2 launch, like some kind of Tiggo family reunion.

The line-up will eventually stretch from Golf-sized hatches to nearly £50k SUVs, with petrol, plug-in hybrid and full EVs all on the cards. No city cars, though – Chery says Brits don’t want them. (Tell that to every Fiat 500 driver in Shoreditch.)

Why Now?

According to Chery UK boss Gary Lan, the brand has spent two decades prepping for this moment – learning to build cars that pass European regulations, don’t fall apart, and hold decent resale values. The pitch is simple: value. With new cars under £40k now an endangered species, Chery reckons it’s spotted a gap big enough to drive an SUV through.

Dealers, Dealers Everywhere

Rather than share the 80-strong Omoda and Jaecoo network, Chery is setting up its own standalone dealers. Sytner Group is already on board – its first time partnering with a Chinese brand – and the plan is to grow to 120 outlets by 2026.

And profitability? Chery says its cars don’t need discounts or deposit contributions because the margins are already baked in. Translation: no desperate pre-reg bargains, but stronger residuals. If true, that’s not just cheery – that’s practically unheard of.

The Long Game

Chery isn’t ruling out building cars here, but don’t hold your breath. First comes a UK R&D centre, then maybe, one day, a factory. In the meantime, the brand’s betting on Brits’ openness to new names. And if nearly 20,000 Omodas and Jaecoos can already find homes, perhaps it’s not such a mad gamble.

Chery’s launch feels less like a cautious toe-dip and more like a cannonball into Volkswagen’s swimming pool. The prices are sharp, the dealer backing is strong, and the appetite for value is there.

So, is Chery about to become the UK’s next household car brand? Too soon to tell. But with a £25k SUV that undercuts the Tiguan, VW might want to keep a very close eye on who’s raiding the pick-and-mix aisle.

Source: Chery