A NEW project to discount electric vehicles in the UK is “distorting the market” say experts.

Discounts of £3,750 are set to be available on EVs as part of the Transport Secretary’s new £650 million scheme, entitled the Plan for Change, to support motorists.

Stuart Masson, Editorial Director of The Car Expert, said: “The UK government’s new electric vehicle (EV) grant – billed as a way to support uptake and affordability – is fast becoming a textbook example of how not to run industrial policy.

“Right now, no one seems to know which cars will qualify, or what the actual grant values will be. The result? Consumer confidence has collapsed overnight. Manufacturers say EV sales have ground to a halt, with customers cancelling orders left and right in anticipation of price drops that might come with a £3,750 grant – if they’re lucky.

“One major carmaker said it would be a miracle if they get clarity within three months. That’s three months of paralysis in a sector that needs momentum. Others aren’t waiting: Chinese brands like Leapmotor, MG and GWM have already slashed prices to mimic the potential grant in a bid to restart stalled sales. European brands, like Alfa Romeo, are now following suit.

“This lack of clarity is not just damaging confidence – it’s distorting the market.

“The underlying issue is depressingly familiar: the government – and the civil service advising it – doesn’t seem to understand how the car industry works. Constant policy reversals, vague guidance, and last-minute decision-making have left manufacturers and consumers alike in limbo.

“If the UK is serious about leading the EV transition, this isn’t the way to do it. The government must urgently provide clear, detailed guidance – or risk losing both credibility and momentum in the shift to electrification.”

The Government’s Plan for Change will come into effect on July 16.