MG joins Chinese rivals in offering EV discounts amid Government grant uncertainty

MG has become the latest Chinese carmaker to cut prices on its electric models, following similar moves by GWM and Leapmotor. The trio is acting in response to the UK Government’s newly announced Electric Car Grant, a £650 million scheme aimed at accelerating the switch to electric vehicles, but one that appears to exclude Chinese-built models on environmental grounds.

From 21 July 2025, MG will offer a £1,500 discount on the MG4 EV and MG5 EV to private buyers. The brand says the move is intended to support the aims of the new grant scheme and will sit alongside any existing promotions from MG’s 155 UK dealer partners. MG’s decision means its already keenly priced electric line-up remains one of the cheapest in the market. With the discount applied, the cheapest MG4 model is now £25,495.

Commenting on the move, Guy Pigounakis, Commercial Director at MG Motor UK, said: “MG has been a key contributor to the EV sector, consistently recognising the economic and environmental benefits of introducing a wide range of affordable, electric-only models. Today’s announcement underlines this commitment, and we will also seek to work constructively with the Government to further increase the sale of EVs.”

Announced last week, the new Electric Car Grant replaces earlier subsidy schemes and offers up to £3,750 off the price of a new battery-electric car with an RRP below £37,000. 

However, the roll-out has been shambolic, with car manufacturers left in the dark as to which cars are eligible. Although the Government has confirmed that eligibility is restricted to manufacturers who meet strict environmental standards, including the use of science-based targets to cut carbon emissions, it has yet to announce final details. 

Transport minister Lilian Greenwood confirmed the direction of the scheme on the BBC’s Today programme, saying: “The grant is restricted to those manufacturers that reach minimum environmental standards. And, frankly, if you generate a lot of the electricity that powers your factory through coal power stations, then you are not going to be able to access this grant.”

Her comments all but confirm that models assembled in China – including those from MG, GWM, BYD, and Leapmotor – are unlikely to qualify under the new rules, due to the country’s continued reliance on fossil fuel-powered manufacturing and battery production.

In anticipation of being left out, GWM UK introduced a £3,750 ‘Green Grant’ of its own earlier this week. It applies to all variants of the ORA 03, including the PURE, PRO, and GT, bringing the starting price down to £21,245 on the road. The grant can also be used as a deposit on a PCP agreement, with 0% APR currently available across the range.

Leapmotor, the most recent Chinese entrant to the UK market, has taken a similar approach. Its compact T03 city car has been reduced by £1,500 to £14,495, undercutting the Dacia Spring by £500 and making it the most affordable new EV currently on sale in Britain. Its larger C10 SUV, a family-sized model rivalling the likes of the Hyundai Kona Electric and Peugeot e-3008, is being discounted by the full £3,750.

Leapmotor’s UK distributor, Stellantis, says the cuts are designed to “avoid delays” caused by the Government’s grant approval process. Reports suggest that despite being priced within the scheme’s £37,000 cap, none of Leapmotor’s Chinese-assembled vehicles are likely to meet the required production standards.