Major British car brand demands urgent action from Labour ahead of April deadline for 'crucial' service

WATCH: Rachel Reeves says she will continue to support the purchasing of electric vehicles

GB NEWS
Felix Reeves

By Felix Reeves


Published: 02/02/2025

- 07:00

The Ansty-based brand launched a programme of voluntary redundancy last year

One of the UK's only all-electric vehicle companies has called on the Government to provide an update on a key grant which is set to expire in April or it could result in a lack of interest in EVs.

London Electric Vehicle Company - or LEVC - takes its inspiration from taxicab dealers JJ Mann and Tom Overton who began to import vehicles into Britain in 1908, which became London's standard just six years later.


These vehicles have helped shape the modern-day LEVC vehicles, which began producing its TX model in 2017, with the electric taxi launching the year after. These taxis are now commonplace in London and have been credited as helping private hire drivers make the switch to cleaner forms of transport.

Amid a backdrop of uncertainty in the electric vehicle market and UK manufacturing in general, LEVC has told GB News that the Government needs to make an urgent announcement regarding the future of certain grants to support the electric vehicle industry.

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An LEVC electric taxi parked near Union Jack flags in London and Chancellor Rachel Reeves

LEVC is calling on the Government to provide an update on the future of the Plug-in Taxi Grant

GETTY/PA

Speaking to GB News, LEVC said it was "constantly reviewing its manufacturing and commercial operations", especially concerning the Government's Plug-in Taxi Grant.

The PiTG allows drivers to get a 20 per cent discount off the total price of a taxi up to a maximum amount of £6,000. The LEVC TX is one of two eligible vehicles alongside the Dynamo Taxi.

However, at present, the Department for Transport has not confirmed funding for the grant past April 5, 2025, meaning drivers could have just a few months to claim the discount.

As a result of the market conditions and the lack of Government confirmation that the trial will continue, LEVC said it had "implemented planned measures to drive efficiencies across the business".

\u200bLondon Mayor Sadiq Khan visited the LEVC factory in 2021

London Mayor Sadiq Khan visited the LEVC factory in 2021

GETTY

A voluntary redundancy programme has been launched and 38 people have been made redundant, including a combination of temporary staff and those who have chosen voluntary redundancy.

A spokesperson for the brand said: "Vehicle production continues at Ansty and there is no impact on customers or any sales and service support available for TX."

Since launching in 2018, the TX has sold more than 11,000 units worldwide, contributed to over one billion miles of driving and reduced the amount of CO2 by around 300 million kilograms.

The Ansty production facility, which is just over five miles northeast of Coventry, is dedicated to LEVC's electric vehicle fleet and is backed by more than £500million in funding.

The LEVC headquarters in Ansty

The LEVC headquarters in Ansty

LEVC

The spokesperson added: "The PiTG has been a crucial driver behind these numbers, as London remains the biggest market for TX. While the success of the PiTG cannot be overstated, its potential upcoming conclusion raises concerns.

"Without the current £6,000 grant, drivers may find it harder to invest in zero-emission taxis which will have an impact on the overall progress made towards creating cleaner cities in the UK.

"We hope Government will consider extending or replacing the grant to ensure the momentum of the transition isn’t lost."

Some industry experts have called on Labour to announce further funding in the coming months, which could be realised in the Chancellor's Spring Statement on March 26.

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LEVC cabs driving through London

LEVC has thousands of electric cabs on the road across the country

PA

Rachel Reeves did not mention the Plug-in Taxi Grant in the October Budget, although the Chancellor did unveil new measures to support the uptake of electric vehicles, including low tax rates and additional funding for public charging devices.

LEVC and its Chinese parent company Geely Holding Group continue to work on the future of new vehicles in the coming years, with the ultimate hope of replacing the TX in the future.

The spokesperson concluded, saying: "More information will be announced in the coming months."

GB News has contacted the Department for Transport for a comment on the future of the Plug-in Taxi Grant.

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