Dutch Electric Car Sales Decline Sharply
The Dutch market for electric vehicles (EVs) is facing a significant slowdown as consumers express reluctance to purchase due to rising costs and shifting government policies, according to reports in AD. Industry experts warn that sales could stagnate entirely without immediate intervention.
According to the EV Monitor 2024 produced by the automotive industry group Bovag, the percentage of new electric cars sold to private buyers dipped from 32 percent at the start of 2024 to 26 percent by the end of the year. The decline has continued into 2025, with EVs representing only 23 percent of new car buys by individuals in February.
Rising Costs and Reduced Incentives
Consumers are becoming increasingly wary of the higher costs associated with EVs. The Dutch automobile association ANWB recently found that the cost per kilometer for an electric car now outweighs that of a gasoline vehicle. Furthermore, the Dutch government has eliminated purchase subsidies for new EVs and introduced road tax charges, thus diminishing financial incentives.
Many prospective buyers also anticipate that EV prices will fall further in the near future, causing them to delay their purchases. “People think that if they buy an electric car now, they could get a better one for the same price or less next year,” Bovag reported. “This uncertainty is keeping consumers on the sidelines.”
Bovag President Peter Niessink argues for the government to reassess its approach, saying private buyers need long-term assurances about the costs associated with EV ownership. “Road taxes should not change every year. The purchase subsidy was cut too quickly, and it should be reinstated for used electric cars. We are still in the early phase of EV adoption, and we cannot afford to remove support this fast.”
Niessink also cited Norway, a leading country in EV adoption, as a model, noting that it still provides substantial subsidies for electric cars. “We are not Norway. The Norwegian market is deeply subsidized, and that has driven their success. The Dutch government must reconsider its approach.”
Impact on the Secondhand Market
The slowdown in private EV sales is also influencing the secondhand market. Used electric cars are not selling, forcing dealers to export them. For the first time, the Netherlands became a net exporter of used EVs in 2024, after previously importing them. While 9,000 secondhand EVs were imported in 2023, the country exported 6,000 in 2024.
Most of these exports involve larger, high-end EVs, many of which were originally purchased through government-subsidized corporate lease programs. In contrast, Dutch buyers are primarily importing smaller, more affordable EVs.
Corporate Sales Remain Strong
Despite the decline in private sales, businesses continue to adopt EVs at a high rate. In 2024, 53 percent of new lease cars were electric, up from 34 percent two years before. Many employers now require or encourage employees to drive electric vehicles as part of corporate sustainability goals. Additionally, company lease EVs still benefit from lower tax rates compared to gasoline models.
Another potential issue is the weight-based road tax system. EVs are heavier than gasoline cars due to their batteries, making them subject to higher road taxes. Bovag warns that if the Dutch government does not implement a weight correction, EV owners will be “penalized for making a sustainable choice.”
Despite advances in EV technology, with many models offering 500 kilometers of range and improved battery life, Dutch government policy changes are hindering the shift to electric mobility. “EVs are better than ever, whether they come from Europe, Korea, or China. Battery life is no longer a concern,” Bovag stated. “But if the government does not act, we risk stalling the transition to a greener fleet.”
