Leapmotor Launches Own EV Grant Ahead of Government Scheme: What This Means for UK Drivers
Source: Stellantis media library
The Chinese electric car manufacturer Leapmotor has jumped ahead of the UK government's Electric Car Grant scheme by launching its own funding initiative, offering UK drivers immediate savings of up to £3,750 on new electric vehicles. This bold move comes as the government's long-awaited grant scheme remains mired in uncertainty over which cars will qualify.
Why Leapmotor Created Its Own Grant
The Leap Grant scheme became available on 18 July 2025, offering immediate savings ahead of the government scheme which won't become fully operational until mid-August. The company's proactive approach addresses the "state of limbo" many potential EV buyers find themselves in whilst waiting for clarity on the government's scheme.
"Our mission is to help make the leap to electric cars easy for UK drivers," explained Damien Dally, Managing Director of Leapmotor UK. The company recognised that whilst the government's upcoming Electric Car Grant scheme is welcomed, consumers are still waiting to learn which vehicles will qualify, how much financial support will be available, and when the grants will take effect.
What the Leap Grant Offers
The Leap Grant provides immediate price reductions across Leapmotor's electric car range:
Leapmotor T03: £1,500 discount, reducing the price to £14,495
Leapmotor C10: £3,750 discount, bringing the price down to £32,750
Both models are also available with 0% APR Personal Contract Purchase finance deals, with the T03 available for £169 per month with a £169 deposit, and the C10 for £319 per month with a £319 deposit.
Leapmotor Vehicle Specifications
| Model | Leapmotor T03 | Leapmotor C10 |
|---|---|---|
| Battery Capacity | 37.3kWh | 69.9kWh |
| WLTP Range | 165 miles | 261 miles |
| Motor Power | 94hp | 218hp (160kW) |
| Charging Speed (AC) | 7kW | 6.6kW |
| Fast Charging (DC) | 48kW (30-80% in 36 minutes) | 150kW (30-80% in 30 minutes) |
| Body Style | 5-door city car | Family SUV |
| Seating | 4 seats | 5 seats |
| Boot Space | Not specified | 435L (1,410L with rear seats down) |
| Price (with Leap Grant) | £14,495 | £32,750 |
Why Leapmotor Cars May Not Qualify for Government Grant
The timing of Leapmotor's own grant scheme appears strategic, as transport minister Lilian Greenwood told the BBC's Today programme that she did not expect any cars assembled in China to be eligible for the government grant.
The government's Electric Car Grant uses strict environmental criteria that restricts the grant to manufacturers that reach minimum environmental standards, stating "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".
Professor Peter Wells of Cardiff University explained that "the scheme takes a lifecycle carbon cost approach that penalises vehicles or batteries assembled in countries deemed to have an electricity grid with 'high' levels of carbon emissions per kW. This is clearly targeted at China, where coal is still a significant fuel in electric power generation".
How the UK Government Grant Works
The UK's Electric Car Grant, backed by £650 million of funding, launched on 16 July 2025 and offers grants of £1,500 or £3,750 on new electric cars priced at or under £37,000.
The scheme operates on two tiers:
Band One (£3,750 grant): Requires full Science-Based Targets validation plus additional criteria including renewable energy usage above 80% and verified carbon-neutral manufacturing
Band Two (£1,500 grant): Requires SBT commitment with approved interim targets and measurable progress toward validation
Vehicles that do not meet minimum sustainability standards will not be eligible for any grant, with the minimum environmental criterion being that manufacturers must hold a verified science-based target.
Key Differences: Leap Grant vs Government Grant
| Aspect | Leap Grant | Government Grant |
|---|---|---|
| Availability | Immediate (from 18 July 2025) | Mid-August 2025 onwards |
| Eligibility | All Leapmotor models | Must meet strict environmental criteria |
| Application | Automatic price reduction | Requires manufacturer approval |
| Funding Source | Leapmotor self-funded | £650 million government funding |
| Certainty | Guaranteed for Leapmotor buyers | Uncertain for Chinese-made cars |
Impact on the Electric Car Market
The Leap Grant makes the Leapmotor T03 the most affordable electric car in the UK at £14,495, undercutting the Dacia Spring (£14,995). This pricing strategy could significantly impact the budget EV sector, particularly as other Chinese brands including BYD and MG are expected to receive only the £1,500 tier of the government grant.
The move demonstrates how manufacturers are adapting to regulatory uncertainty. By launching its own grant, Leapmotor has "sidestepped the uncertainty around which cars will qualify at which level, as well as questions over whether Chinese cars will meet the sustainability criteria".
Manufacturing and Market Position
The T03 is manufactured in Europe on the old Fiat 500 line in Poland, avoiding both shipping costs and the 20% EU import tariff. However, the C10 is imported to Europe from China, thereby incurring a 21% import tax.
Leapmotor International is a Stellantis-led joint venture with a 51/49 partnership between Stellantis N.V. and Leapmotor, providing access to existing dealer networks across the UK.
Maximising Savings Through Salary Sacrifice
For UK employees looking to maximise their electric car savings, combining manufacturer grants with salary sacrifice schemes can deliver substantial benefits. With the current 3% Benefit-in-Kind rate for electric vehicles in 2025/26, employees can save 20-50% compared to personal leasing or purchasing.
When combined with Leapmotor's grant:
T03: Could cost under £100 a month through salary sacrifice after the grant
C10: Becomes accessible to mid-range earners through pre-tax salary deductions
The Broader Implications
Leapmotor's initiative highlights the challenges facing Chinese manufacturers in the UK market. Whilst BYD's true fleet sales were up by 643% in the first six months of 2025 compared to the same period last year, the exclusion from government grants could impact future growth.
The company's decision to offer its own grant demonstrates confidence in its products and commitment to the UK market. Leapmotor plans to expand from its current 46 retailers to 70 by the end of 2025, supporting this growth strategy.
Looking Ahead
As the government finalises which vehicles will qualify for official grants, manufacturers are likely to continue finding innovative ways to make electric cars more affordable. The RAC suggests that discounted EVs should start showing up in showrooms within weeks as manufacturers complete their applications.
For consumers, this competition between manufacturer-funded grants and government schemes could drive down electric car prices across the market. Combined with the significant savings available through electric car salary sacrifice schemes, UK drivers have more opportunities than ever to make the switch to electric driving affordable.
The Leapmotor Leap Grant represents a new chapter in EV affordability, demonstrating how manufacturers are willing to invest directly in making electric mobility accessible to UK drivers, regardless of government policy uncertainties.
Interested in exploring electric car salary sacrifice options? Calculate your potential savings or discover the best electric cars to salary sacrifice for 2025.
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Last updated: 21/07/2025
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