Electric cars in Malta have recently become much cheaper – and it’s no coincidence.

Three of the island’s biggest car dealerships are in direct competition, each using Government electric vehicle (EV) and scrappage grants to drive prices down and capture a growing market of budget-conscious buyers.

In an effort to reduce Malta’s carbon footprint – especially with an average of 19 new vehicles hitting the roads every day, according to the NSO – the Government had implemented a series of financial incentives to encourage the adoption of electric vehicles (EVs).

The most widely used and recent grant is aimed at everyday drivers purchasing Category One vehicles with up to nine seats. If the vehicle’s selling price is up to €40,000, buyers are eligible for a generous €8,000 grant. For vehicles priced above €40,000 but not exceeding €100,000, the grant stands at €6,000.

To further ease the transition, the Government had also announced a scrappage scheme. Those trading in an old vehicle when purchasing a new EV can benefit from an additional €500 or €1,000 grant, depending on the expiry date of the old vehicle’s license.

Local competition

The cheapest EV currently on the market is the T03 from Chinese automaker Leapmotor, a five-door model designed for urban and short-distance driving. This compact city car, available at Motor's Inc, offers interior space similar to B-segment vehicles – small, fuel-efficient cars that are larger than microcars but smaller than traditional compact cars. It features a WLTP range of 265 km – a standard used to measure fuel consumption, CO₂ emissions, and electric range – and was ranked highest in the small BEV segment of the J.D. Power Initial Quality Study.

After applying government grants, the T03 is priced at €9,400.

Next is the Dacia Spring Expression, available through Kind’s Auto Sales Limited. The Spring is a five-door hatchback, marketed as combining off-road capabilities with the agility of a city car. It comes equipped with two electric motors, air conditioning, and a 308-litre boot. The car offers a driving range of 225 km and comes with a warranty of five years or 100,000 km.

After government grants, it is priced at €10,400.

Finally, the BYD Dolphin Surf is offered by GasanZammit Motors. The compact five-door city car features continuous LED lighting, a floating centre console, a large touchscreen near the driver, and a 345-litre boot expandable to 1,310 litres with the rear seats folded. It also includes a panoramic glass roof covering the entire cabin.

After grants, the Dolphin Surf is priced at €10,500.

Just a few years ago, owning a new electric car for around €10,000 would have been unimaginable for most Maltese buyers, as EVs were largely seen as expensive, niche products for early adopters or luxury markets.

Today, advances in technology, Government incentives, and fierce competition among local dealerships have transformed the landscape, making affordable electric vehicles a reality.

This growing rivalry is reshaping consumer choices, with an everyday EV’s price now ranging from approximately €9,400 to €10,500 after grants, highlighting how the competition for Malta’s EV market share is rapidly intensifying.