Vauxhall has realigned the pricing across its model range so that all its electric cars cost less than £40,000.
The move is a response to the Government’s decision to extend the ‘Expensive Car Supplement’ to electric vehicles (EVs).
The range-topping Grandland Electric Ultimate is now priced at £39,995 (OTR), down from £40,495. Pricing for the Astra Electric Sports Tourer Ultimate has also reduced to £39,995, from £40,695.
From April 1, owners of new electric cars will need to pay the lowest first year rate of vehicle tax, which is set at £10 for zero-emissions-in use (0g/km) vehicles. From the second tax payment onwards, they will now pay the standard rate of £195 (the same as ICE cars). Previously, EVs were exempt from VED.
Models priced over £40,000 (including options) will now also attract the ‘Expensive Car Supplement’. This imposes an additional annual fee of £425 for five years, beginning from the second year of registration, on top of the standard rate.
As a result, electric cars that cost more than £40,000, including options, will cost an additional £620 per year in road tax, or a total of £3,110 over the first six years.
For vehicles costing below £40,000, the total taxation is £985 for the same period – a saving of £2,125.
Prior to April 1, there was no VED for electric cars.
Fleet operators were hoping the Chancellor would reverse the decision to extend the tax to EVs in the Spring Statement.
No announcement was made, however, despite the Government acknowledging the new tax posed a problem for the EV market.