NISSAN said yesterday it was "concerned" about the government's decision to introduce a vehicle excise duty for electric car owners from 2025.

"While we are pleased to see a growing electric vehicle (EV) market in the UK, we're concerned about the effect that withdrawing this customer incentive could have on the electric car market, just as it is accelerating," a company spokesperson told City A.M.

Chancellor Jeremy Hunt announced yesterday morning that EVs would no longer be exempt from paying the tax as part of the government's Autumn Budget.

Until yesterday's announcement, the vehicle excise duty (VED) was paid by all fuel and diesel vehicles that used the UK's public road network.

Hunt told Parliament the rate increase for EVs would be capped at one percentage point for the first three years from 2025.

Nissan's remarks were echoed by Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, who said the new measure would "threaten both the new and second-hand EV markets."

"With a zero emission vehicle mandate for car and van manufacturers, we need a framework that encourages consumers and businesses to buy electric vehicles," Hawes commented.

(c) 2022 City A.M., source Newspaper