Nissan GB’s newly appointed managing director, James Taylor, believes that reducing or eliminating Value-Added Tax (VAT) on electric cars could be a significant incentive to boost their adoption. Speaking at the unveiling of the new electric Nissan Micra, Taylor emphasized that government incentives are still necessary to drive the electric vehicle (EV) market forward.
Taylor, who took on his new role just two weeks ago, stated that the current EV market is ‘lagging behind’ and that copying some of the benefits offered to fleet customers when they transition to EVs for the retail market would be ‘common sense.’ He suggested that either halving or completely removing VAT on electric cars could align with the government’s decarbonization goals while creating a disproportionate benefit that could stimulate demand.
Key Points from Taylor’s Statement
- The current EV market is underperforming
- Government incentives are crucial for growth
- Reducing or eliminating VAT could boost private demand
- The industry doesn’t need to return to the £5,000 plug-in car grant levels
- Smaller incentives can make a significant psychological impact on buyers
The new electric Nissan Micra, launched alongside three other EVs, will have a range of up to 250 miles with its larger battery option. Nissan plans to launch four new electric vehicles in the next 24 months. Taylor drew parallels with past incentive programs like the scrappage scheme, which had a significant psychological impact on consumers’ decisions to switch to newer, more environmentally friendly vehicles.

Taylor’s comments reflect his previous stance while at Vauxhall, where he urged the government to provide incentives for EV adoption. He maintains that while the industry doesn’t need to return to the initial £5,000 plug-in car grant, some form of ‘carrot’ for buyers is necessary to create a snowball effect in EV adoption.