Germany is immediately abolishing subsidies for electric vehicles, what is the Netherlands doing?

Our eastern neighbors are immediately ending their EV subsidies. A shock for Germans who were about to buy an electric car, but also for car manufacturers who have previously had difficulty selling their electric models.

Just like us, you could apply for subsidies in Germany for both new and used electric vehicles. It was planned that this regulation would remain in force until the end of this year, but that is now suddenly changing. As of today, German e-car funding is a thing of the past.

Consequences for the sale of electric cars

As a German car buyer, you could get 3,000 to 4,500 euros from the funding pot for a new electric car. The contents of that pot have shrunk following a court ruling in November, leaving a hole in the budget. The federal government is now trying to close this gap by terminating the funding scheme early. New funding applications will therefore no longer be processed.

According to Ferdinand Dudenhöffer, a researcher in the automotive sector, this has a significant impact on sales of electric cars. He expects sales to fall from around 500,000 electric cars this year to 300,000 electric cars next year, he told the German news channel NDR. Of course, this is not only due to the early abolition, but also to the abolition of the funding regulation per se.

Manufacturers will feel the effects of the abolition of electric car subsidies

“This is not only a catastrophe for drivers and the climate, it is also a huge catastrophe for the German automotive industry,” says Dudenhöffer in an interview. The German electric car manufacturers will notice this. For example, Volkswagen has not yet achieved a breakthrough in the world of electric cars with its ID series. Production is ongoing, but hardly anyone is buying.

What about the SEPP in the Netherlands?

We know this in the Netherlands Funding program for electric cars for private individuals. You can receive a subsidy for both new electric cars and used electric cars. The financial incentive is 2,950 euros for new models (with a new price of up to 45,000 euros) and 2,000 euros for used electric vehicles. The total budget for this year was 67 million euros. In just a few days there are now over 23 million euros left.

The subsidy is therefore no longer as high as it was in July 2020, when the regulation came into force. Back then, you could still withdraw 4,000 euros from the state treasury to buy a new electric car. The idea was to slowly reduce the funding level. Next year the funding level for a new electric vehicle would drop to 2,550 euros.

Since sales of electric cars are disappointing here too, it was recently decided to leave the funding levels at 2,950 and 2,000 euros next year. Would you rather not buy an electric vehicle? Then wait a while for the Renault Twingo, which you can lease at a bargain price.