I think that AI response is a bit questionable, not least because as Motability customers we do not buy the cars! Also, many sub £37k EVs probably have APs that are less than the value of the grant, so how would that work?
IF Motability Operations get the discount then I should think that manufacturers will simply reduce the discounts that they are currently offering to them. If you recall, this happened in reverse when the last lot of grants were pulled. Manufacturers dropped their prices to offset.
This is just one of the reasons why I don’t agree with taxpayer funded subsidies. The money often doesn’t benefit the intended audience. It’s a bit like ‘Help to Buy’. All that did was reduce the discounts that house builders were offering thus helping the builders more than the consumers. It became known in the industry as ‘Help to Buy Housebuilders yachts’!
Always far better to leave it to the market to decide what sells and what doesn’t. That would force manufacturers to reduce prices or force the government to revise their unrealistic targets.