The market share of electric vehicles (EVs) is shrinking. Whereas in the first quarter of 2020, 8.6% of all new vehicles on Dutch roads were EVs, in the same period in 2021 this will be only 6.6%. The advance of EVs is also stalling in the leasing sector.
This reports VNA, which expresses its concerns about the development. A significant part of the decline in the number of newly registered EVs in the Netherlands can be attributed to the falling number of new electric lease cars, according to VNA.
Higher additional tax rate
VNA argues that the business leasing market has been a key driver for the electrification of the Dutch vehicle fleet in recent years. However, the corona pandemic has caused the market for new cars to shrink sharply. VNA also points to the higher additional taxable benefit on new EVs equipped with a battery. This addition has been increased from 8% in 2020 to 12% in 2021.
Renate Hemerik, president VNA: "Our earlier suspicion that a too-rapid increase in the additional taxable benefit will slow down the move to electric is becoming true. The share of fully electric in new lease cars has dropped from 10% to 6% in the first four months. EVs are fortunately developing rapidly, but cannot yet do without incentives."
Private lease share also declines
Besides the business leasing market, the private leasing market is also showing a decline. Government subsidies combined with the growing supply of EVs on the Dutch market caused a rise of some 11% in the number of battery EVs in 2020. However, this rise abruptly slowed down in 2021. Thus, VNA points out that the subsidy budget for EVs was already exhausted in the first week of 2021. The number of electric in new private lease cars fell to around 4% in the first quarter of 2021.
Hemerik: "The strict annual budgeting of the subsidy on new private EVs (SEPP) inhibits the development of electric in the private market. Especially now that many private individuals, by corona, are opting for individual transport, it is important to keep the subsidy tap open. This is also what other European countries around us are successfully doing."
'Inflow of new EVs is essential'
About 2% of the total fleet in the Netherlands is fully electric. VNA calls the influx of new electric cars essential for the greening of the fleet. Without it, the supply of EVs on the used car market also remains limited.
Hemerik: "We see that subsidy budgets are available for used electric cars. However, a wide range of used EVs is still lacking. We would therefore like to see the separation between new and used in the subsidy budget broken down. Provide an influx of new cars now, so that they will soon reach private individuals via the used car market."
Figures from RVO show similar picture
Electric vehicle sales show a similar picture, figures from the Netherlands Enterprise Agency (RVO) show. RVO, commissioned by the Ministry of Infrastructure and Water Management, publishes a monthly overview of electric vehicles on Dutch roads.
Figures show that the market share of EVs in the Netherlands fell to 5.3% from January to March 2021. The share of hybrid cars increased by 6.6% to 9.8%. In March 2021, 2,107 EVs were sold in the Netherlands, 1,809 less than in March 2020. On the contrary, the number of hybrid vehicles sold increased by 1,520 to 2,638 units. The best-selling model of the Tesla Model 3, of which 342 units were sold. The Volvo XC40 (256 units) and Volkswagen ID.4 (247 units) followed.
Author: Wouter Hoeffnagel
