Labour's new car grant prompts iconic British brand to cut vehicle prices to boost EV adoption

One of the UK's most popular brands, Vauxhall, has revealed new pricing for its new Grandland Electric AWD following the rollout of Labour’s Electric Car Grant.

The new model will now be priced at £35,495 on the road as it should benefit from the Government's EV grant, pending confirmation.

The British carmaker announced that the new pricing structure will position the all-wheel drive variant below the single-motor alternative despite offering superior performance capabilities.

The range-topping Ultimate specification carries a price tag of £36,995, keeping both versions beneath the £40,000 limit that triggers additional Expensive Car Supplement charges.

This competitive pricing strategy arrives as manufacturers respond to Labour's expanded Electric Car Grant programme, which provides discounts of up to £3,750 on qualifying electric vehicles as part of a £650million investment to accelerate electric vehicle adoption.

The all-wheel drive system combines a 213PS front motor with an additional 112PS rear unit, delivering a combined output of 325PS and 509Nm of torque.

This configuration enables acceleration from zero to 62mph in 6.1 seconds, while the 73kWh battery provides up to 311 miles of range according to WLTP testing standards.

Rapid charging capabilities allow the battery to replenish from 20 to 80 per cent capacity in 26 minutes when connected to a 160kW DC charger.

Standard equipment on the GS variant includes a 16-inch central touchscreen, wireless smartphone connectivity, satellite navigation and 19-inch alloy wheels.

Transport Secretary Heidi Alexander stated: "We're putting money back in people's pockets and making it easier and cheaper for families to make the switch to electric, by delivering discounts of up to £3,750 on EVs."

The scheme forms part of Labour's broader £4.5billion investment to accelerate the transition to electric vehicles, supporting both industry growth and consumer adoption.

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According to Government data, qualifying models have experienced up to 80 per cent increases in consumer interest since the programme's launch, demonstrating the impact of reduced purchase prices on buyer behaviour.

Ford was the first manufacturer to secure the maximum £3,750 discount under the scheme, with both the Puma Gen-E and e-Tourneo Courier now eligible for the full grant amount.

Four additional models from Stellantis brands have qualified for £1,500 reductions, including the Peugeot e-308 and e-408, plus the DS 3 and DS Nº4.

Lisa Brankin, Ford UK Chair and Managing Director, said: "We welcome the Government's decision to accelerate the transition to electric mobility and are proud that Ford's commitment to sustainability has been recognised with the full EV grant."

The Government has also allocated £381million through the Local EV Infrastructure Fund to install over 100,000 additional public charging points, addressing concerns about charging accessibility.

However, Edmund King, AA President, noted that upfront costs remain a significant barrier for drivers considering electric vehicles, suggesting the new grants could help bridge this financial gap.

Electric vehicle owners without driveways can now access home charging solutions through a £63million funding package announced in July, potentially reducing running costs to as little as 2p per mile.