Stellantis may be excluded from the UK’s newly announced Electric Car Grant (ECG) due to concerns about the carbon intensity of its electric vehicle production in Poland, as the government moves to tie EV subsidies to environmental standards across the entire manufacturing chain.
The ECG scheme, launched earlier this month, offers up to £3,750 toward eligible battery-electric vehicles priced under £37,000. However, in a shift from previous subsidies, vehicles must now meet stringent environmental and performance criteria. These include not only zero tailpipe emissions, a minimum 100-mile (WLTP) range, and a top speed of at least 60 mph (96 kph), but also low emissions associated with the production of the vehicle and its battery.
“The vehicle assembly emissions account for 30% of the overall environmental score given to the vehicle,” the UK government stated. The remaining 70% is based on battery cell production location, using carbon intensity data from the International Energy Agency (IEA).
This methodology poses challenges for models assembled in Poland, including Stellantis’ Jeep Avenger, Fiat 600e, Alfa Romeo Junior Elettrica and Abarth 600e. Despite Poland hosting Europe’s largest battery plant, the country relies on coal for around 60% of its electricity, giving it a carbon profile comparable to China at approximately 7.5 tonnes of CO₂ per capita, according to the IEA.
Chinese-made vehicles are also expected to be excluded or limited under the scheme due to similar emissions concerns. A government source told The Telegraph, “The scheme has been intentionally designed to incentivise the greenest possible manufacturing,” adding that automakers can work with the government to remain eligible.
Stellantis, which owns Vauxhall, Peugeot, and Fiat, has applied for inclusion in the ECG. “We are making the necessary grant applications for customers of our electric vehicles and are confident that a wide range of these, manufactured in our plants in the UK and Western Europe, will be eligible,” a company spokesperson said.
The government requires that only automakers with validated Science Based Targets (SBTs) will be eligible for the scheme, as verified by the Science Based Targets Initiative (SBTi). The vehicles must also come with specific warranty conditions, including an eight-year / 100,000-mile warranty on batteries and drivetrain components.
While the UK Department for Transport has published the eligibility criteria, several technical assessments remain under review, leaving some automakers in uncertainty as they prepare for the scheme’s rollout. Meanwhile, companies such as MG, GWM, and Leapmotor have launched their own direct subsidies—sometimes matching the £3,750 ECG incentive—offering consumers immediate discounts while formal approvals remain pending.