Labour car grant prompts iconic British automaker to slash prices

10/27/2025

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Labour's new car grant prompt iconic British brand to cut vehicle prices

Vauxhall has cut the price of its new Grandland Electric AWD to £35,495 as the industry reacts to Labour’s newly rolled-out Electric Car Grant. The move reshuffles the EV market, positioning a high-performance all-wheel-drive option below a cheaper single-motor trim and keeping flagship prices under tax-triggering thresholds.

New pricing for the Grandland Electric AWD and range details

Vauxhall’s latest price list puts the all-wheel-drive Grandland Electric at a headline on-the-road price of £35,495, pending final confirmation that the model qualifies for the government grant.

The top-spec Ultimate version is set at £36,995. Both figures sit comfortably below the £40,000 mark that can trigger the Expensive Car Supplement.

What the trims include

  • GS standard kit features a central touchscreen close to 16 inches.
  • Built-in satellite navigation and wireless smartphone connectivity are fitted as standard.
  • Higher trims ride on 19-inch alloy wheels and add premium touches.

How the EV grant reshapes buyer incentives

The grant aims to lower upfront costs and speed consumer adoption. Cars that qualify can attract discounts of up to £3,750, depending on the model.

Industry data released by the government shows a sharp rise in interest for qualifying EVs, with some models seeing as much as an 80% boost in consumer searches and enquiries.

Which manufacturers have benefited so far

  • Ford has already secured the maximum grant for some models, unlocking the full £3,750 discount for eligible cars.
  • Several Stellantis brands have landed lower-tier reductions of £1,500, including models from Peugeot and DS.
  • Vauxhall’s pricing change follows this wave of eligibility and aims to capture shoppers now focused on grant-backed deals.

Government backing and supporting infrastructure

Alongside purchase discounts, ministers are putting public money into charging networks to tackle range anxiety and convenience concerns.

  • The Local EV Infrastructure Fund has been allocated around £381 million to add over 100,000 public charging points.
  • A separate package of roughly £63 million targets home-charging access for households without private driveways.

Why infrastructure matters to buyers

With more chargers and easier home installation, running an EV becomes less stressful for drivers who can’t rely on a private charger.

After grants and lower running costs, some estimates suggest the per-mile cost of charging could fall to about 2p per mile for certain users.

Industry reaction and wider market impact

Automakers and trade figures have welcomed the support but warned that upfront costs still deter many buyers.

Automotive leaders say the grants and infrastructure funding together help bridge the affordability gap and accelerate fleet electrification.

Notable model adjustments and eligibility

  • Ford models such as the Puma Gen-E and the e-Tourneo Courier qualified for the full grant.
  • Stellantis entries—like the Peugeot e-308 and e-408, plus DS 3 and DS Nº4—secured smaller reductions.
  • Vauxhall’s Grandland Electric AWD pricing places a performance-orientated option in reach of grant-minded buyers.

What buyers should check before committing

  • Confirm official grant eligibility for the exact trim and specification.
  • Factor in whether the vehicle price remains below the £40,000 threshold to avoid extra levies.
  • Compare total cost of ownership, including insurance, charging access and running costs.

Practical tips for prospective EV owners

  • Ask dealers to confirm grant paperwork and timing before signing.
  • Investigate local public charging rollout plans and charger types available.
  • Consider home-charging grants or council schemes if you lack off-street parking.

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