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Dataforce Analysis: Netherlands are Most Electrifying in Promotion

Even though BEVs are currently popular and disadvantages like limited ranges are slowly fading, they are still significantly more expensive than internal combustion engines. Government subsidies are intended to balance this out. But how high are the subsidies in Europe? This question was investigated by the data specialist in the Car Taxation Guide.

Privately, things are going quite well for BEVs, less so in fleets: Dataforce has taken a close look at the electric vehicle markets in Europe. In the Netherlands and Germany, BEVs account for almost a quarter privately. | Graphic: Dataforce
Privately, things are going quite well for BEVs, less so in fleets: Dataforce has taken a close look at the electric vehicle markets in Europe. In the Netherlands and Germany, BEVs account for almost a quarter privately. | Graphic: Dataforce
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The data specialist has analyzed the subsidies for electric cars in Europe and has now published the results. According to their analysis, the Netherlands leads in subsidy rates, followed by France and Germany. For the calculation of the subsidies, Dataforce examined and compared the incentives in the countries. A compact SUV was used as the standard for the data and calculations, as most private market customers today opt for this segment (22.6 percent market share in 2022, EU 27+EFTA+UK). Purchase premiums are perhaps the best-known type of subsidy for electric cars, where the price for buyers is directly reduced through a government grant. In Germany and France, these make up the largest part of the total subsidies.

Additionally, the analysts noted that countries without purchase premiums rank far behind in the subsidies for private car buyers. However, many private buyers underestimate the additional impact of tax benefits, which can quickly amount to several thousand euros. In the Netherlands, the large tax savings even ensure that the total subsidy is almost twice as high as in France.

Notable Differences in Purchase Premiums

If a registration tax exists, BEVs are currently exempt from it in the investigated countries (tax advantage at purchase). Additionally, BEVs currently do not pay any vehicle tax anywhere (tax advantage for ownership). In this respect, the countries are similar. However, the differences in the amount of these advantages are drastic. In the Netherlands and France, fairly high CO2-based taxes are incurred already at the registration of a typical compact SUV if one opts for an internal combustion engine. Vehicle tax is also an expensive affair in the Netherlands. There are also more pronounced differences when it comes to purchase premiums. In France, this is the highest at 5,000 euros, followed by Germany with 4,500 euros and the Netherlands with 2,950 euros. Although Italy has a premium, it falls out of this comparison as an electric car of this size is priced above the subsidy limit. In Belgium and the United Kingdom, there are no more purchase premiums.

High Subsidies Favor Faster Transition to Electric

The amount of benefits varies significantly between countries. Similarly, the market shares of BEVs also differ. Consequently, BEVs are particularly attractive where high taxes can be avoided or the purchase price is reduced by premiums. This is precisely what Dataforce sees in the Netherlands, Germany, and France. The three countries with the highest subsidies also have the highest BEV shares. The market share in the private market is well above the EU average of 15.4 percent. Countries with comparably low subsidies, such as the UK, Belgium, and Italy, are below the average. In the case of the latter two, even significantly so.

Completely Different Situation in the Fleet Market

The situation in the fleet market, however, is entirely different. In many countries, such as Belgium, Austria, and the UK, the tax advantages of fully electric vehicles only come into full effect here. There are significant incentives for the "benefit in kind." The Car Taxation Guide Detailed information on taxation and electric vehicle promotion in the 11 most important European markets has been summarized by Dataforce in the Car Taxation Guide. This guide also includes projections of possible savings from BEVs as well as PHEVs for each country. The compendium will be available from March 2023 at a net price of 1,950 euros from the provider.

Translated automatically from German.
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