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EVs, Plug-in Sales Slump in the Netherlands After Incentives Shrink
Demand for electric and plug-in hybrid cars in the Netherlands dropped about 50% last year to fewer than 20,000 units after the government shrank tax breaks, Automotive News Europe reports.
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Demand for electric and plug-in hybrid cars in the Netherlands dropped about 50% last year to fewer than 20,000 units after the government shrank tax breaks, Automotive News Europe reports. The online newsletter cites data from JATO Dynamics.
Sales had surged in 2015 when annual taxes on such vehicles were cut to as little as 7% of the sticker price from 25% for conventional cars. The savings amounted to at least €6,000 ($6,300) per year.
The government hoped the incentive would help reduce carbon dioxide emissions. But ANE says government data indicated few buyers of the hybrids actually plugged them in to extend electric-only operation. The tax on plug-ins has since risen to 14%, triggering a sharp drop in demand, ANE says.
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