Leapmotor Offers UK's Cheapest Battery Car, Despite Probable Ineligibility for Government Grants

Strategic Insights -

Leapmotor, a Chinese electric vehicle brand, has reduced its prices to match the UK government's new grant scheme, which aims to encourage consumers to purchase battery cars. However, it is uncertain whether Leapmotor's Chinese-built models will qualify for the grants, as they are subject to specific conditions. The company's price cuts, ranging from £1,500 to £3,750, make its models the most affordable on the UK market.

Key Takeaways:

  • Leapmotor has cut the price of its To3 small electric car by £1,500, making it the most affordable EV on the UK market, below the Dacia Spring, which is also built in China and sells for £14,999.
  • The company's C10 sport utility vehicle will also come with a £3,750 discount, bringing its price down to £32,750.
  • Leapmotor's UK director, Damien Dally, stated that the company aimed to compete "in the strongest position", regardless of whether its Chinese-built models had access to the government's £650mn grant.
  • The company plans to assemble its vehicles for the European market in Stellantis plants in Europe, raising concerns for the European industry.
  • The new government grant scheme aims to promote the adoption of battery cars, with discounts ranging from £1,500 to £3,750 for eligible models.
  • The Chinese embassy in the UK has called on the government to ensure a "fair and non-discriminatory environment" for businesses from all countries, including China.

Statistics:

  • Leapmotor's market share in the UK is 0.1%, while BYD has 1.9% and Chery's Omoda and Jaecoo brands have 1.5%, according to the Society of Motor Manufacturers and Traders.
  • The Government's new grant scheme is worth £650mn and aims to encourage consumers to purchase battery cars.
  • The discounts for eligible models range from £1,500 to £3,750, with the highest discount offered for the "greenest" models.
  • Leapmotor has entered the UK market in March and has a base of operations in the country.

Sources:

  • The Financial Times: "Leapmotor starts selling UK's cheapest battery car"
  • The Society of Motor Manufacturers and Traders: "UK motor manufacturers' market share"
  • The British government's website: "New grant scheme to encourage adoption of battery cars"