The French company has slashed prices by £500 to make up for the change announced this week.
Citroen has cut the price of its range-topping e-C4 electric family car to make up for the reduction of the electric car grant. The government reduced the Plug-In Car Grant (PICG) on March 18, making cars that cost £35,000 or more ineligible and reducing the grant for eligible vehicles from £3,000 to £2,500 per car.
The government said it made the decision to cut the grant to make the funding “go further” and to “help more people make the switch to an electric vehicle”. Nevertheless, the changes were widely slammed by the car industry, with the Society of Motor Manufacturers and Traders (SMMT) describing the change as “the wrong move at the wrong time”.
In response, Citroen has cut the price of its new e-C4 electric family car to effectively mitigate the change to the grant. When the e-C4 was launched at the beginning of the year, the range-topping Shine Plus model cost £35,545 before the grant was applied. That meant the vehicle would no longer be eligible for the PICG under the new rules, so Citroen has cut the price by £550, bringing it into line with new rules.
That not only means the car is eligible for the grant once more, but it has also costs slightly less than it did before the grant was reduced. Back in February, the top-end model cost £32,545, but the new pricing means the range-topping variant comes in at £32,495.
However, the lowliest model in the range has seen its price rise by £500 as a result of the PICG changes. Where the entry-level Sense Plus model came in at £30,395 when the car was launched, it now costs £30,895.
Eurig Druce, the managing director of Citroen UK, said the company had been “disappointed” by the news of changes to the PICG, but he said changes to the pricing structure would allow customers to “benefit” from the remaining grant.
“We were disappointed to hear the news that the support for consumers to make the switch to a low emission vehicle had been reduced,” he said. “For this period of transition to be a success and for electrification targets to be met, both the industry and consumers need clearer long-term guidance and support on how we will get there. That said, I am proud that Citroën UK’s policy of fair pricing ensures that consumers will continue to be able to benefit from the full government Plug-In Car Grant when purchasing their new e-C4.”