MG Motor UK stepped in with its own £1,500 discount after electric automobile orders under £37,000 stalled following confusion over the brand new Electric Automotive Grant.
Business director Guy Pigounakis said MG dealers saw EV order activity “quite literally stop” inside 24 hours of the Government’s Electric Automotive Grant announcement.
Customers weren’t only hesitating but additionally cancelling existing orders, telling retailers they’d return once the grant’s details were clear.
Pigounakis said: “We decided that we won’t have that situation proceed.
“We had to take some motion.”
MG introduced a £1,500 incentive for all MG4 and MG5 private retail customers earlier this week, filling the gap while the Government finalises its own scheme.
Pigounakis expects more brands to follow suit in the approaching days.
Leapmotor, GWM UK and Alfa Romeo have already launched their very own discount schemes.
Pigounakis explained that MG has submitted its application for the brand new ECG but has low expectations for a quick turnaround.
“If now we have any response back inside three months, it can be a miracle,” he said. “We obviously can’t be out of the marketplace for the subsequent three months. It is also a sensible possibility we cannot get a grant anyway, so we’ve chosen to maneuver now.”
Grant uncertainty could hit September EV sales
Although the Government has stated that retailers will find a way to process grant discounts online from August 11, many carmakers may not receive confirmation of which models are eligible until late August.
This might affect stock positioning and promoting just ahead of the crucial September plate-change period, when greater than 50,000 latest EVs were registered last 12 months.
Pigounakis said it’s becoming increasingly likely that few manufacturers will find a way to sell vehicles under the official grant scheme in time for the brand new registration month.
That might leave retailers scrambling to supply incentives of their very own, risking inconsistent messaging and added pressure on margins.
Retailers at the moment are calling for urgent clarification to avoid missed targets and lost EV momentum during one in all the busiest periods within the calendar.
This Article First Appeared At www.am-online.com
