Tesla’s electric car rival BYD has taken fresh aim at the Government’s EV car subsidies. Last month, Transport Secretary Heidi Alexander announced that drivers across the UK will soon enjoy discounts on a range of new electric cars, ranging from £1,500 to £3,750.

The company, which is seeing sales surge across Europe as Tesla’s continue to decline, criticised what it called "uncertainty surrounding eligibility" for the scheme as it confirmed that it has applied to be included. Last month, BYD's CEO Wang Chuanfu called the subsidies a “bit of a joke” as it questioned their effectiveness in persuading consumers to consider purchasing an electric car. He told the Financial Times: “They are too small and too late. By the time they start to take effect, the market will already be saturated with Chinese EVs.”

In response to the delay in being granted eligibility to participate in the scheme, the brand has confirmed that it has increased its power battery warranty to eight years and 155,342 miles (200,000km).

The offer applies across its range of models, including those that have already been purchased.

Additionally, BYD is also launching five years of free servicing on models as the Chinese upstart attempts to deliver "genuine, long-term ownership benefits".

Steve Beattie, sales and marketing director at BYD UK said: “While we may not currently be part of the Electric Car Grant, we didn't want to wait to show our commitment.

"This five-year servicing offer is our way of giving back to drivers who choose BYD and supporting them well beyond the showroom.

"That includes the Approved Used market - which plays a vital role in accelerating EV adoption and strengthening the value of our vehicles over time."

The grant on offer to those purchasing selected electric vehicles as part of the Government’s Plan for Change is aimed at making electric car ownership a reality for thousands of people by “putting money back in working people's pockets.”

Cars priced at less than £37,000 are eligible for the grant but will fail to be eligible for the full grant and a lower £1,500 subsidy if they fail to meet strict emissions criteria.

Currently, six Citroen models have been deemed eligible for inclusion on the scheme.

The comments from BYD come as the company saw registrations in the UK rise by more than 400% year on year to 3,184 in July, according to data from UK’s Society of Motor Manufacturers and Traders (SMMT).

Conversely, sales in Tesla plummeted sharply in the UK with just 987 vehicles registered in July, compared with 2,462 in the same month last year.

Similar declines were seen across Europe with registrations in Sweden down by 86%, whilst France and Belgium saw declines of 27% and 58% respectively.

Mike Hawes, SMMT chief executive, said: “July’s dip shows yet again the new car market’s sensitivity to external factors and the pressing need for consumer certainty.

“Confirming which models qualify for the new EV grant, alongside compelling manufacturer discounts on a huge choice of exciting new vehicles, should send a strong signal to buyers that now is the time to switch.

“That would mean increased demand for the rest of this year and into next, which is good news for the industry, car buyers and our environmental ambitions.”