Mitsubishi Motors is supporting calls for the Government to suspend VAT on all pure electric vehicles.
Motoring journalist Quentin Willson and the RAC have also called for the suspension.
They all believe removing VAT on pure EVs would bridge the gap between the cost of an EV and a conventional vehicle – helping to stimulate consumer demand, encouraging investment and assisting further development of the green automotive industry.
Willson said: “While the Government gives £5,000 grants for EVs, they’re still too expensive for mass market. Clawing back thousands of pounds of that grant in VAT isn’t helping.
"We need to create demand among consumers and investor confidence.
"The UK must lead the world in green car technology before the Chinese beat us to it.”
Lance Bradley, managing director of Mitsubishi Motors in the UK, said: “We have applauded the Government on the introduction of the £5,000 plug-in car grant, but we also believe that more can be done.
“Making pure EVs VAT exempt, even if only for a limited time to help establish an early market, would give this motoring revolution the extra boost that it needs.”
Bradley has also suggested some extra government-led incentives, such as free use of bus lanes and free parking for pure EVs in London and other large UK conurbations.