Vauxhall has become the first manufacturer to cut the price of its electric cars in response to the recent shock reduction in the UK government’s Plug-in Car Grant (PiCG).
The firm’s two electric cars, the Vauxhall Corsa-e and Vauxhall Mokka-e, are now £3000 cheaper than they were previously, creating a significant saving for buyers.
The government slashed the PiCG for buyers of new EVs by £1000 last week, while also reducing the number of cars eligible for the scheme.
It previously offered buyers of electric cars 35% off the purchase price up to a maximum of £2500. That maximum has now been cut to £1500. At the same time, the maximum recommended retail price of vehicles eligible for the grant has been reduced from £35,000 to £32,000.
As a result, the Corsa-e now starts at £25,805 post-PicG and the Mokka-e at £29,365. Previously, the supermini was priced from £27,805 and the crossover from £31,365.
At the time the grant cut was announced, Vauxhall managing director Paul Willcox said: “Today’s changes provide a confusing message to UK consumers and will harm EV adoption at a time when we need to be doing all we possibly can if we are to stand a chance to move the UK to electrified only vehicles by 2030.”
He added: “We understand the government’s desire to phase out the plug-in vehicle grant at some point, we really need to see a more strategic, longer-term approach.”
While Vauxhall maintains this critical stance on the grant cut, it has dropped its EV prices so not to lose potential buyers, a move that the government was likely hoping for and one that other car makers are set to follow.
Addressing the Corsa-e and Mokka-e price drop, Willcox commented: “Vauxhall wants to move the UK to electric motoring as quickly as possible, which is why we have committed to being an electric-only brand from 2028.
“In light of a further evolution to the Government Plug-in Car Grant, we've taken the decision to change our pricing policy on our all-electric Corsa-e and Mokka-e models.
“With more attainable pricing from significant reductions on both models, as well as the grant, we hope to put zero-emissions-in-use motoring within the reach of even more British motorists.”
Last week, Vauxhall announced that the Corsa-e and Mokka-e now have longer ranges. The Corsa-e has risen from 209 to 222 miles and the Mokka-e from 201 to 209 miles.
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The sooner the grant is removed the better but we will still never see the true cost of the car being made available to everyone. The growth and survival of the car brokers along with the various "purchase/loanership" schemes show we the car market will never be a transparent process. The price of EVs has been maintained at an artificially high level that seems to depend on what the government will subsidise. Has there been similar falls in the base price in other markets or has there been new cheaper models introduced? Are the reduced prices due to equipment being taken out of cars or not being put in which cause issues with different models on the production line or due to not being turned on in the software. Stripping out safety equipment doesn't seem to reduce the price of cars but reduction of subsidies does.
I'm surprized some posters here ever buy anything, are they still feeling hard done by because Ford bought a Escort Mk2 7 years after the original Escort. As to the price drop, it's as if an ICE car has never been reduced by the manufacturer or the dealer has an offer on one week after you've bought the same car. Luddites.
The difference being that in this case, the manufacturer was abusing the British taxpayer rather than the buyer. Those who don't own EVs, those who don't even drive were lining the pockets of Vauxhall.
The tax was supposed to encourage the uptake of EV's.
There is a saying that still holds true, it goes something like: if you can't say something nice, don't say anything at all.
In which case you may as well throw you keyboard away