The Dutch electric vehicle (EV) market is experiencing headwinds with a decline in sales to private households following the government’s decision to halt subsidies, according to a report in the Parool.
In 2024, EVs represented 26% of all new car sales, a decrease from 32% in 2023. Figures from the motoring organization Bovag indicate that sales have continued to fall this year, now accounting for 23% of new car sales.
The motoring organization ANWB previously noted that the operational costs of electric cars have surpassed those of gasoline-powered vehicles. This, coupled with the elimination of various subsidies and tax benefits, has caused consumers to adopt a wait-and-see approach regarding price reductions, according to Bovag.
“Consumers want long-term security about the cost of running an electric car,” Peter Niesink, Bovag chairman, stated. “And that means certainty about vehicle taxes, not changes every year.”
The market for used electric cars has also stagnated. While the Netherlands saw a net import of 9,000 electric cars in 2023, there was a net export of 6,000 last year.
The subsidy for new EV purchases was discontinued in 2024. Starting in 2025, EV owners will face higher sales taxes. Additionally, motor vehicle tax on EVs will gradually increase, and the benefit-in-kind tax advantage for business drivers will be eliminated entirely in 2026.
“The purchase and use of an electric car must remain affordable for private households,” Niesink said. “Practical obstacles must be removed: consumers need certainty about charging infrastructure, grid capacity, and battery lifespan.”
Despite the challenges, the overall electric car market is still growing thanks to lease car sales. EVs currently constitute 53% of company car purchases, according to Bovag.
In 2023 and 2024, the Tesla Model Y was the best-selling new car in the Netherlands, with nearly 2,000 registered last November. However, new orders fell below 500 by January, the AD reported last month.
