Vauxhall has lowered the prices across its entire lineup of electric vehicles in an effort to exempt from the costly luxury car tax, commonly known as the car supplement. The change follows the UK government’s decision to remove road tax exemptions for electric vehicles, effective from April 1.
The Expensive Car Supplement, once limited to petrol, diesel, and hybrid vehicles, now applies to all new cars priced at £40,000 or more. Car buyers now need to pay an extra £425 annually for five years, in addition to the standard road tax, which is currently £10 in the first year and increases to £195 per year afterward.
Consequently, owners of new electric vehicles priced above £40,000 need to pay as much as £620 annually in road tax, amounting to £3,110 over the first six years of ownership.
By lowering prices on its most premium models, Vauxhall ensures its entire lineup remains below the £40,000 threshold, allowing drivers to bypass the extra costs.
The electric Vauxhall Grandland Ultimate, originally priced at £40,495, has been reduced to £39,995. Similarly, the Vauxhall Astra Sports Tourer Ultimate, which was priced at £40,695, now starts at £39,995.
Eurig Druce, Vauxhall’s acting managing director, stated that the decision was driven by the goal of making electric mobility both accessible and affordable for drivers in the UK. He emphasized, ‘With electric cars no longer exempt from Vehicle Excise Duty, Vauxhall is making electric mobility accessible and affordable for British drivers.’
Not all electric Vauxhall models fall below the £40,000 mark. The Vauxhall Vivaro Life Electric, a nine-seater MPV based on a van design, remains priced above £50,000 in both its Design and Ultimate trims. Owners of these models will be required to pay an additional £425 in annual tax.
Vauxhall has previously reduced prices for its electric vehicles. At the end of 2024, the Grandland Electric received a price reduction of nearly £5,000, while discounts on the Corsa Electric and Astra Electric have made the costs more comparable to petrol and hybrid versions.
Chancellor Rachel Reeves detailed changes to the VED tax during the Autumn Statement, with a focus on increasing costs for petrol and diesel cars to encourage the adoption of zero-emission and electric vehicles. Starting next month, cars emitting over 255g/km of CO2 will incur an additional £2,745 fee.
GENERAL | Skoda VW India Wins Top Exporter Award from Mumbai Port Authority
