What is the UK's EV grant scheme?

The UK government offers £3,750 grants to encourage the adoption of electric vehicles, but the scheme assesses carmakers' eco-credentials to determine eligibility.

Why is Stellantis, the owner of Vauxhall, at risk of being excluded from the UK's EV grant scheme?

Stellantis may be penalized because it relies on Polish factories to produce some of its electric models, and Poland's high dependence on coal-fired power generation could make these vehicles ineligible for the grants.

Home / Business and Economy / Vauxhall Owner Risks Exclusion from UK's £3,750 EV Grant Scheme

Vauxhall Owner Risks Exclusion from UK's £3,750 EV Grant Scheme

Q: How are carmakers evaluated under the UK's EV grant scheme?

The scheme scores carmakers based on the greenness of their production processes, with a 30% weighting on where EVs are assembled and a 70% weighting on where their batteries are produced.

26 Jul

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Summary

Stellantis, owner of Vauxhall, may miss out on UK EV grants due to Polish factories
New scheme scores carmakers on green production, favoring those with low-carbon operations
Chinese-made cars likely to be blocked from grants, raising concerns for Western firms in Poland

Vauxhall Owner Risks Exclusion from UK's £3,750 EV Grant Scheme

The owner of Vauxhall, Stellantis, is currently at risk of being excluded from the UK's £3,750 electric vehicle (EV) grant scheme due to its reliance on Polish factories. Stellantis, which also owns brands like Peugeot, Citroën, and Fiat, is among several carmakers scrambling to demonstrate their eco-credentials in a bid to qualify for the new government subsidies.

However, some of Stellantis' cars may miss out on the grants because they are made in Poland, which could fall foul of the scheme's net zero rules. The UK government's grant program will assess carmakers based on the greenness of their production processes, with a 30% weighting on where EVs are assembled and a 70% weighting on where their batteries are produced.

This means that manufacturers with operations in countries like Poland, which has a high dependence on coal-fired power generation, may be penalized. The UK has already warned that Chinese-made cars are likely to be blocked from receiving the grants for similar reasons.

The situation poses a challenge for Western carmakers with a presence in Poland, which has attracted significant investment from the automotive industry and is also Europe's biggest supplier of batteries. Stellantis, for instance, produces several electric models at its plant in Tychy, southern Poland, including the Jeep Avenger, Fiat 600e, and Alfa Romeo Junior Elettrica.

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