UK Electric Car Grant Faces Criticism for Shutting Out Chinese EV Makers
The UK’s new Electric Car Grant (ECG) has drawn sharp criticism from Chinese automakers after its carbon-footprint eligibility criteria effectively exclude most cars built in China.
BYD’s European boss described the scheme as “not fair to consumers,” warning it could limit affordable EV choices. The grant assesses a vehicle’s entire manufacturing carbon footprint—including the electricity mix at the factory—making it almost impossible for China-produced models to qualify under current standards.
The impact is immediate. BYD’s Dolphin Surf supermini, a key entry-level EV, is priced from £18,650 without the subsidy, meaning buyers miss out on the potential £1,500–£3,750 discount enjoyed by European-built rivals.
Despite the setback, BYD insists its UK ambitions remain strong, citing growing brand awareness and plans for local assembly in Europe. Other Chinese brands, including MG (owned by SAIC) and Nio, face similar challenges, potentially reshaping the competitive landscape in one of Europe’s fastest-growing EV markets.
Industry analysts say the policy underscores the UK’s push to align EV incentives with net-zero goals and domestic manufacturing—but it also raises concerns about consumer choice and price competition as the country accelerates its electrification targets.