Compared to the rest of Europe, the Dutch e-car subsidy seems like a joke

Our government would like to encourage you to buy an electric car and is therefore offering you an electric car subsidy. However, the financial incentive is low compared to other European countries, which comes at the expense of effectiveness, new research shows.

The research was carried out by UK-based LeasingOptions, which examined the EV subsidies of thirty European countries. The researchers not only examined the amount of funding over the past four years, but also its effectiveness.

Top 10 countries with the highest EV subsidies

If you want an electric car, Romania is the place for you. The average subsidy since 2020 is the highest in the Eastern European country. However, the highest EV subsidy in Europe currently (and therefore not on average) goes to the Cypriots. For years the islanders didn’t receive a cent, but since 2022 the subsidy suddenly increased to 20,000 euros. This is a maximum of 19,000 euros in subsidy and 1,000 euros extra if you send your old car to the eternal hunting grounds.

In 2019, 1,506 electric vehicles were sold in Romania. Nearly 14,000 electric cars are expected to be sold in 2023. Almost a tenfold increase, which corresponds to an average annual growth of around 75 percent in the period 2020 to 2023.

Biggest increase in electric car sales

An increase, but not very impressive compared to the high subsidy. In other countries, sales of electric vehicles grew much faster. Romania is not even among the top 10 European countries with the largest increase in electric vehicle sales in the last four years.

A small side note: In some countries the number of EV sales in 2019 was quite low, so one can certainly speak of a significant (percentage) increase. Consider Slovenia, number one on this list. In 2019, only 186 electric cars were sold; in 2023 there will be 4,328. An increase of 2,227 percent. On average, that’s almost 220 percent per year.

SEPP: EV funding in the Netherlands

You may have noticed that the Netherlands does not appear in either country. Of course, that doesn’t say everything about a country’s electromobility. Norway is also nowhere to be found on these lists, even though 80 percent of new cars sold there are electric vehicles. There is no longer much growth to be achieved. However, the huge sales of electric cars are not so much due to subsidies, but rather to a significant tax advantage.

In the Netherlands we know the SEPP, which stands for Funding program for electric cars for private individuals. This program started in 2020 and as a buyer of an electric vehicle you could fish 4,000 euros from the state treasury. This year the funding amount is 2,950 euros. Rather modest compared to the other countries in this study. However, the SEPP amount for 2024 is higher than previously assumed.

Electric cars are less financially attractive

If the Netherlands really wants to boost sales of electric vehicles, the government would be well advised to subsidize electric cars more. This research shows that a large part of the Netherlands will only consider an electric vehicle if the government makes electric cars more financially attractive.

However, the Dutch state is currently doing the opposite. Yes, there is e-subsidy, but owners of an electric car will have to pay vehicle tax from 2026. Not a special price, but full price. This is contrary to the government’s objectives and is a disadvantage for electric vehicle drivers. The vehicle tax rate is determined, among other things, by the vehicle’s weight, and electric cars are quite heavy due to the large battery packs in the ground.