The chancellor's decision to extend road tax to electric models is 'short-sighted', says Ford.
Car makers have expressed dismay over plans to make electric cars subject to vehicle excise duty, in line with petrol, diesel and hybrid vehicles.Nissan, which makes several electric models, said it was concerned about the potential impact on sales of the new tax."We are still many years from the 'tipping point' when electric vehicles will reach cost parity with petrol and diesel vehicles. Until then, we should be incentivising customers to make the greener choice," he said.
The firm said it would continue to work with the government to tackle "the main barriers to the electric vehicle transition, including public charging and measures to continue to support the purchase of EVs". In the Autumn Statement the chancellor also announced that electric cars would no longer be exempt from the expensive car supplement. The supplement of £355 is charged every year from the second to sixth year of registration for vehicles priced at more than £40,000.
Edmund King, AA president, said his organisation understood electric cars would need to be taxed, but said the measures in the Autumn Statement would "slow the road to electrification" and "dim the incentive to switch".
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