Vauxhall slashes prices of EVs to swerve ‘luxury car tax’ as company boss warns electric drivers are being ‘penalised’

VAUXHALL has slashed the prices of EVs to swerve the “luxury car tax” – with the firm's boss warning electric drivers are being “penalised”.

The iconic car brand has cut the price of the Ultimate versions of its Astra Sports Tourer and Grandland electric cars to below £40,000.

This mega move will mean all of Vauxhall's EVs – except the van-based Vivaro Life Electric – will avoid the vehicle excise duty (VED).

From April 1, road tax is changing its rates for petrol, diesel and electric vehicles with the latter also getting an extra “luxury” car tax for vehicle over £40,000.

From next month, any car that emits more than 255g/km of CO2 will be required to pay an extra £2,745 to be allowed on the road.

This means that for some drivers, VED costs will spike to a whopping £5,490.

Additionally, the costly car supplement, for those in possession of cars worth more than £40,000 when new, will rise by £15, to £410.

This means owners of cars worth more than £40,000 face paying an extra £2125 in tax in six years.

Chancellor Rachel Reeves announced changes to the VED tax during the Autumn Statement, revealing that her aim is to strengthen incentives to purchase zero-emission and electric cars “by making petrol and diesel motors more expensive.“

However, Eurig Druce, acting managing director of Vauxhall, has argued that with the average price of an EV in the UK hovering at around £48,000, Reeves' tax change will penalise electric car owners.

He told Autocar: “The threshold for the Expensive Car Supplement has remained at £40,000 since inception in 2017, despite subsequent high levels of inflation. If it were to have risen with inflation, it would now be around £52,000.

“With the average price of an EV in the UK at around £48,000, this new tax means that customers buying some of the more attainable electric cars on the market are now being penalised whilst at the same time we're trying to move as many British motorists to electric as quickly as possible.”;

How will the changes affect you?

If you have an electric, zero or low emission car registered on or after April 1, 2025, from April 1 you will have to pay £10 car tax in the first year.

From the second year onwards, you will have to pay the standard rate of £195.

If you have an electric, zero or low emission car registered between April 1, 2017 and March 31, 2025, you will have to pay £195 from April 1.

For those with an electric, zero or low emission car registered between March 1, 2001 and March 31, 2017, you will have to pay £20 car tax.

Owners of hybrid vehicles who previously got a £10 a year discount on their car tax will lose it and have to pay £195.

Electric vans and motorcycles will also move to the existing annual rates for light goods vehicles and small engine size vehicles.

Electric vans registered on or after March 1, 2001, and under 3,500kg will have to pay up to £351.75.

Electric vans registered between March 1, 2003, and December 31, 2006, and under 3,500kg will have to cough up up to £147.

Electric motorbikes will have to pay up to £122.85 depending on the model and payment method.

Drivers of electric vans and motorbikes can pay for road tax in different instalments which affects the amount paid.