Fiat announces electric car grant for buyers of 500
Scheme has been made in response to the UK government axing its Plug-in Car Grant last year
Italian firm’s E-Grant offers £3000 to buyers in effort to increase demand for 500 EV and undercut rivals
Fiat will launch its own EV grant as part of a nationwide incentive to encourage customers to buy its electric cars, making it the first manufacturer to do so.
The grant, called Fiat E-Grant, which is immediately available for customers, is worth £3000 and is applicable to purchases of the electric Fiat 500 and Fiat 500C.
The Italian brand hopes to increase demand for its EVs and in turn bring the cost of buying an EV down by taking advantage of economies of scale.
The electric 500 and 500C are currently on sale from £28,195 and £34,195 respectively. After the grant reduction, the hatchback will undercut the £28,215 Honda E and £29,995 Renault Zoe.
The scheme has been introduced in response to the UK government axing its Plug-in Car Grant last June. The grant had been gradually reduced over time, from £5000 at introduction in 2011 down to an eventual £1500.
Fiat UK managing director Damien Dally said: “There’s no doubt the government’s Plug-in Car Grant successfully kick-started the UK’s electric car revolution. However, with the cost of living crisis and rising cost of electric vehicles, coupled with our net-zero climate targets, we believe more needs to be done to incentivise individuals to be able to afford to make the switch."
Fiat has written an open letter to the UK government, asking for its help in incentivising UK residents to switch to EVs and claiming that EV sales have "plateaued" in the UK.
The Society of Motor Manufacturers and Traders has reported that sales of EVs increased by 25.6% between 2022 and 2023, however, going from 77,064 to 96,755.
Fiat is continuing its fast-paced transition to an all-electric line-up under parent company Stellantis, removing all pure-ICE models from sale last June.
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.