Fiat Launches E-Grant to Boost Demand for Electric Cars in the UK
Fiat has become the first car manufacturer to introduce its own electric vehicle (EV) grant in the UK. The Fiat E-Grant offers a £3000 reduction on purchases of the electric Fiat 500 and Fiat 500C, with the aim of increasing demand for its EVs and undercutting rivals. The grant is available immediately to customers and is part of a nationwide incentive to encourage customers to buy electric cars. The Italian automaker hopes that by increasing demand for its EVs, it can take advantage of economies of scale and bring down the cost of buying an EV.
The Fiat 500 and 500C are currently priced from £28,195 and £34,195 respectively. After the grant reduction, the hatchback will be cheaper than the £28,215 Honda E and £29,995 Renault Zoe. The introduction of the E-Grant comes in response to the UK government’s decision to axe its Plug-in Car Grant last year. The grant had been gradually reduced over time, from £5000 at its introduction in 2011 down to an eventual £1500.
Fiat UK managing director Damien Dally said that while the government’s Plug-in Car Grant had successfully kick-started the UK’s electric car revolution, more needed to be done to incentivise individuals to afford to make the switch. In an open letter to the UK government, Fiat has asked for help in incentivising UK residents to switch to EVs, claiming that EV sales have plateaued in the country.
The Society of Motor Manufacturers and Traders has reported that sales of EVs increased by 25.6% between 2022 and 2023, going from 77,064 to 96,755. However, Fiat believes that more needs to be done to encourage people to make the switch to electric.
Fiat is continuing its fast-paced transition to an all-electric line-up under parent company Stellantis. Last June, the automaker removed all pure-ICE models from sale. All of its current offerings use powertrains with some form of electrification, and it has pledged to become an electric-only brand worldwide by 2030.
The popularity of the 500 has contributed to Fiat’s newfound focus on small cars. The Fiat Panda is set to return with electric power this year, as is a successor to the Punto supermini.
In summary, Fiat has launched its own EV grant in the UK, offering a £3000 reduction on purchases of the electric Fiat 500 and Fiat 500C. The aim is to increase demand for its EVs and undercut rivals. The introduction of the E-Grant comes in response to the UK government’s decision to axe its Plug-in Car Grant last year. Fiat has asked for help in incentivising UK residents to switch to EVs, claiming that EV sales have plateaued in the country. Fiat is continuing its transition to an all-electric line-up under parent company Stellantis and has pledged to become an electric-only brand worldwide by 2030.
