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21% of newly registered Dutch cars are EVs — here’s how that happened

  • Tech
  • Netherlands
  • Electric vehicle
  • Tax

21% of newly registered Dutch cars are EVs — here’s how that happened

Polestar accelerates the shift to sustainable mobility, by making electric active irresistible.

The Netherlands, admitting its small size, is rich in culture, history, and admirable sights. The country is famous for its canals, bright tulip fields, arresting windmills, acceptable clogs, a great variety of cheeses, and its bicycling culture. The Netherlands is also one of the arch electric agent markets, both in Europe and globally. In 2020, 21% of all newly registered cars were array electric cartage (BEVs) and 4% were constituent hybrid electric cartage (PHEVs). This high rate of uptake, decidedly of BEVs, is a attestation to the accelerating electric agent behavior implemented over the past several years.

To drive the electrification of the civic agent fleet, the Dutch government offers strong incentives to reduce the cost for buyers and owners of an electric vehicle. This is abnormally true for BEVs, which are the focus of the government’s zero-emission carriage strategy. Individuals purchasing or leasing a new array electric commuter car can claim back €4,000 from the government. In the case of a buzz array electric car, the amount is €2,000.

In addition, owners of a BEV account from waivers on the ancient allotment tax and annual buying taxes, or accept a abridgement in the case of PHEVs. Conversely, purchasers and owners of accepted agitation engine cartage are answerable agent taxes that are decidedly high in allegory to other European markets.

How do these behavior affect the domiciliary budget of individuals who want to buy a new car? Attractive at the analogy below, one thing catches the eye: consumers get the best deal by buying a BEV instead of a commensurable PHEV, gasoline, or diesel model. This thanks to the €4,000 acquirement bonus, waivers on allotment and buying tax, and almost low burning costs.

Taking VW’s ID.3 as an example, deducting the government bonus of €4,000 from the tax value (which after-effects in a lower base price and value added tax than displayed in the car manufacturer’s price lists) makes it the cheapest another both at acquirement and by 4-year buying cost. Gasoline and diesel cars face almost high ancient allotment taxes and annual taxes for agent ownership, adding up to several bags of euros. Compared to the gasoline adaptation of the VW Golf, clandestine buyers who pick the VW ID.3 BEV save €4,500 upon accretion and €10,000 if befitting the car for 4 years. If purchasers are not lucky enough to get the €4,000 ancient bonus, before the accessible funds are exhausted, the cost advantage still exists albeit reduced.

Figure
Figure 1. Four-year clandestine agent buying costs in the Netherlands.

So, for alone consumers, the cost advantage of buying a BEV is ensured with banking and fiscal incentives in place. But what about aggregation cars? In 2020, 73% of all new electric commuter cars in the Netherlands were registered by companies versus 27% by clandestine individuals. Companies also account from assorted incentives if opting for a BEV, including tax deductions for purchases.

Moreover, advisers abreast using a array electric aggregation car from their employer, which is advised as a account in kind, profit from bargain amounts on clandestine income tax. In 2020, the added taxable income rate for BEVs was 8% for the first €45,000 of the vehicle’s acquirement price, including Value Added Tax and allotment tax. Above this threshold, the taxable income rate was 22%.

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This higher rate also activated to all cartage with emissions above 0 g CO2 per km. The figure below shows the impacts of these incentives for the tax year 2020. Persons with a yearly taxable income greater than €68,508 were answerable an added €120 per month in income tax for their clandestine use of a VW ID.3 BEV aggregation car. In comparison, the account added tax burden was decidedly higher for the gasoline, diesel, and PHEV VW models, alignment amid €340 to over €400 per month. The furnishings were also notable for annual taxable incomes below €68,508.

Figure
Figure 2. Account added tax burden on income tax for advisers abreast using a aggregation car in the Netherlands in 2020.

Focusing on costs, clandestine and business consumers in the Netherlands are wise to opt for a BEV. But, is this reflected in the agent market? If appropriate electric agent uptake by clandestine versus aggregation new car registrations in 2020, the figure below reveals that 67% of clandestine individuals and 74% of companies absitively in favor of BEVs in the first half of 2020, and 73% and 90%, respectively, in the second half. This award is not surprising, because the government’s appetite and behavior adopted to spur zero-emission vehicles, i.e. BEVs and fuel cell electric vehicles.

Figure
Figure 3. New electric agent registrations in the Netherlands in the first of second half of 2020 by clandestine individuals and companies (company-related data exclude concise rentals and registrations by dealerships and manufacturers).

New electric commuter car registrations showed an upward trend in 2020, as shown in the figure below. Registrations of new electric commuter cars, including BEVs and PHEVs, alone badly in January 2020 compared to December 2019, from 55% to 8% of all new commuter car registrations. This drop can be explained by tighter added income tax rates for abreast used array electric aggregation cars by employees, which added from 4% to 8% on 1 January 2020. While other European countries recorded a high uptake of electric cars from January 2020 as tighter CO2 emission standards for new commuter cars set by the European Commission kicked in, this effect was negated by the Dutch tax change. The global COVID-19 communicable starting in March resulted in a slight drop of electric commuter car registrations from 17% in March to 14% in both April and May.

The market recovered with continuously accretion shares higher than 20% starting in August. This was likely helped by the newly alien acquirement bonus for clandestine BEV purchases and leases, although funds were beat within a few days. Similar to the end of December 2019, consumers also made sure to secure a BEV in December 2020, as the added taxable income rate for privately-used array electric aggregation cars was added by 4 allotment points to 12%, and the beginning was decreased from €45,000 to €40,000 starting in January 2021. The result was a celebrated 72% share (69% BEVs and 3% PHEVs) of new electric commuter car registrations in December 2020 and a sharp atrophy to 11% (3% BEVs and 8% PHEVs) in January 2021.

Figure
Figure 4. Account registrations of BEVs and PHEVs in the Netherlands amid October 2019 and January 2021.

The Netherlands set an archetype by implementing strong allurement behavior for electric vehicles, decidedly BEVs, while ambience disincentives in the form of decidedly higher taxes for gasoline and decidedly diesel cars. These activities are belted by added actions.

The Netherlands has the highest number of public charging points for electric cartage and per 100 km2 in Europe. Moreover, some Dutch city and borough governments such as Amsterdam, Rotterdam, and The Hague provide free public charging points on request of clandestine individuals and businesses where home and abode charging is not feasible. In addition, cities such as Amsterdam are aiming to have all cartage throughout the city emissions-free by 2030. The government also aims to have a minimum of 30 cities implementing zero-emission zones for urban acumen by 2025. Beyond policies, consumers can also choose from an accretion number of electric agent models for sale. In 2020, if only attractive at BEVs, over 60 altered models were newly registered in the country.

The Netherlands is proof that civic and local behavior play a key role in active electrification, and decidedly the alteration to BEVs. As a result, the country is on a good course to reach its 2030 target to only sell zero-emission new cars.


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Appear March 12, 2021 — 10:09 UTC

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