Vauxhall introduces new ‘luxury’ car tax benefits for electric vehicle models despite axing 1,100 jobs
Vauxhall has announced major price cuts on its electric vehicle models, offering savings for drivers looking to transition away from petrol and diesel models.
The significant reductions apply to both Grandland Design and GS models which will now fall under the crucial £40,000 price threshold, bringing substantial tax benefits for buyers who will no longer be subject to the Expensive Car Supplement.
The entry-level Design trim now starts at £37,345, representing a £3,650 reduction, while the GS model is priced at £38,495, offering a £4,650 saving.
The top-spec Ultimate trim will have the largest price drop of £4,700, bringing its new on-the-road price to £40,495, just making the cut for the car tax price cap.
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The pricing changes bring significant Vehicle Excise Duty (VED) savings for potential buyers who without the update would be expected to pay more for their electric vehicle in April 2025.
This results in total VED savings of £1,640 over four years, equivalent to around £40 per month. The price gap between hybrid and electric models has also narrowed considerably, with the popular GS trim showing just a £1,845 difference between hybrid and electric versions.
Drivers can expect additional cost savings through cheaper off-peak charging rates compared to petrol costs, Vauxhall explained. The price cuts come days after the carmaker announced it would be reducing its workforce considerably to focus on its electric strategy.
In a statement issued earlier this week by owner Stellantis, it stated: “Stellantis remains committed to acting responsibly toward its employees in Luton and, if the Company proposal is approved, will offer relocation support to facilitate employees wishing to transfer to the Ellesmere Port site with an attractive package, where hundreds of permanent jobs will be created.”
The announcement added that “dedicated comprehensive job support”, including opportunities for retraining, for all employees affected will also be implemented.
The carmaker revealed on Monday that it would be shutting its van-making factory in Luton, potentially leading to the loss of 1,100 jobs.
Responding to the decision, a Government spokesperson stated that while it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, “we know this will be a concerning time for the families of employees at Luton who may be affected.”
The spokesperson added: “We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.”
James Taylor, managing director of Vauxhall, said: “We are pleased to announce that two of our three New Grandland Electric versions, representing around an expected 80 per cent of sales, will not attract this new tax – making going electric in our latest family SUV even more attainable.”
The New Grandland Electric features an impressive range of up to 325 miles and can charge from 20 to 80 per cent in just 26 minutes.
Meanwhile, Vauxhall’s Plug & Go offer includes a £500 contribution towards an Octopus Energy Ohme Pro wallbox and installation for online buyers. Alternatively, customers can opt for £500 free charging credit at Tesco stores nationwide.
The price reductions on the Grandland Electric are part of Vauxhall’s broader strategy to make electric vehicles more accessible, with the Corsa Electric starting from £29,045, with price cuts of up to £4,150 across the range.
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A new Long Range version of the Corsa Electric is available from £30,440, offering up to 248 miles of range. The Astra Electric line has also seen significant reductions, with the Design model now starting at £34,945.