Manufacturers drop prices in line with new PICG threshold

Manufacturers drop prices in line with new PICG threshold

Posted by

Kevin Blackmore

April 2021

A number of electric vehicle manufacturers have moved to slash list prices to bring them under the newly announced £35,000 eligibility threshold for the Plug-In Car Grant (PICG).

Much of the fleet market was nonplussed by the Government’s recent announcement that the PICG was being cut from a maximum of £3,000 to £2,500 and the eligibility threshold reduced from £50,000 to £35,000 – a move that many denounced as poor timing.

Now, to maintain PICG eligibility for their buyers, several vehicle manufacturers have dropped prices below the £35,000 threshold.

Nissan

Nissan, for example, has lowered prices for both the 40kWh and 62kWh versions of its popular Leaf EV, ensuring all models are now PICG eligible.

The changes, which bring on the road (OTR) price reductions ranging from £650 to £5,265, mean the Leaf now starts from £25,995 for the Acenta model, increasing to £32,445 for the range-topping e+ Tekna.

Model Battery New price (incl PICG) Price reduction
Leaf Acenta 40kWh £25,995 £1,350
Leaf N-Connecta 40kWh £27,995 £650
Leaf 10 Special Version 40kWh £28,670 £650
Leaf Tekna 40kWh £29,995 £665
Leaf e+ N-Connecta 62kWh £30,445 £5,250
Leaf e+ Tekna 62kWh £32,445 £5,265
BMW

Meanwhile, BMW has cut the prices of the i3 and i3s to ensure its customers can still benefit from the PICG. On the road pre-grant pricing for the i3 120Ah now starts at £33,805 and for the i3s 120Ah at £34,805, ensuring they still fit under the £35,000 threshold.

Volkswagen

In addition to lowering the price of the e-Up!, Volkswagen has also adjusted pricing for certain ID.3 models. The Life Pro and Life Pro Performance models now sit below the Plug-in Car Grant threshold with prices starting at £29,970 and £31,290 respectively. Both models offer a WLTP combined range of 263 miles. A new Pure Performance model has been introduced alongside a new entry-level City trim level. The Pure Performance model has a smaller 48kWh battery that provides up to 217 miles range. The ID.3 City starts from £28,370 after the government’s plug-in car grant deduction.

Peugeot

Peugeot has followed suit with a cut in prices of £450 across its e-2008 range. As a result, the pre-grant price has fallen to £33,230 for the Active Premium, £34,430 for the Allure, and £34,880 for the Allure Premium. However, GT and GT Premium models at £37,180 and £39,180 respectively are no longer eligible as they sit above the £35,000 threshold.

Citroen

Meanwhile, Citroen has lowered the pricing of its e-C4 range-topping ‘Shine Plus’ electric hatchback by £550 to £34,995. The cut means that the whole e-C4 electric hatch range continues to qualify for the PICG.

Vauxhall

And stablemate Vauxhall has also made price cuts following the reductions so that all its electric models are eligible for the revised plug-in grant.

In line with the PICG changes, Vauxhall has revised the pricing across the entire Mokka-e range to ensure all derivatives remain eligible for the grant. Prices for the Mokka-e SE Premium now start from £33,040 OTR, while the range-topping Mokka-e Launch Edition starts from £34,995 OTR.

And to ensure the Vivaro-e Life qualifies for the new plug-in grant, Edition models have reduced by more than £2,000, with prices starting from £34,995 OTR. The Vivaro-e Life Combi will be the same specification level as the Edition model and will also start from £34,995 OTR.

For the Mokka-e, Vauxhall also offers a subsidised 7kW home charging unit from PodPoint for just £299.

The Corsa-e range is already priced below the grant threshold but customers will also receive the option to take a free Wallbox Pulsar Plus charger installed by a British Gas engineer. British Gas will also offer 30,000 free green miles to Vauxhall customers through a British Gas EV dual fuel tariff.

Kia

In another development, Korean manufacturer Kia has introduced a new mid-specification version of its e-Niro electric crossover, priced under £35,000 to ensure it qualifies for the PICG.

The new Kia e-Niro ‘2’ Long Range features the same long-range 64kWh battery pack and high-power 204hp motor as higher-spec e-Niro models, while offering a £34,945 on-the-road price to qualify for the grant. Kia says it is capable of travelling up to 282 miles (WLTP rated) on a single charge.

Hyundai

Hyundai has also made price adjustments in the light of the PICG cuts, reducing prices for the Kona Electric and Ioniq Electric across the range.

Kona Electric 39KWh prices have been cut, with the SE Connect now costing £30,395 and Premium at £31,745.  The Kona Electric 64kWh Premium now costs £34,995 and offers the longest range (300 miles) of any grant-eligible model.

The range-topping Kona Electric Premium SE is the only electric Hyundai model not eligible for the grant, with a price of £37,145. And prices for the Ioniq Electric have been reduced for the Premium model to £32,995 and the Premium SE to £34,995.

Fleet Alliance managing director, Martin Brown, commented: “It is perhaps unsurprising that vehicle manufacturers have made these price cuts following the Government changes to continue to offer their customers the advantages of the PICG– albeit at a lower level.

“The timing of the cuts by Government were disappointing given that many businesses are trying to encourage more drivers into zero-emission EVs and phase out fossil-fuelled vehicles, as well as helping achieve the Government’s net-zero carbon ambitions.

“But these price cuts do show that manufacturers have leeway to trim prices, which will help remove another barrier to EV market entry.”


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