Sales of electric cars are stagnating due to the threat of vehicle tax

According to ING economists, sales of electric cars are stagnating. The most important reason? Potential electric vehicle drivers are concerned about the government’s road tax plans.

The fact that sales of electric cars are falling short of expectations is due to various developments.

Electric cars too expensive

Firstly, there are still not enough affordable models on the market. You pay 35,000 euros for a decent electric vehicle and that is too much for most private individuals.

There are models with a starting price of less than 25,000 euros in the pipeline, such as the Citroën ë-C3 and the VW ID.2, but we still have to wait a while for that.

Purchase subsidy too low

Secondly, the purchase subsidy for private individuals has been reduced to 2,950 euros in recent years. The amount was supposed to be reduced further this year, but the government stopped this at the last minute to boost sales of electric vehicles.

Vehicle tax for electric vehicles

Thirdly, electric drivers will have to pay vehicle tax for the first time from 2025. This year it is still a quarter, but in 2026 it will be 100 percent. This adds up since an electric vehicle is much heavier than a gasoline car due to its battery.

Lower level production

Car manufacturers are suffering from falling demand for electric cars. Fiat and Volkswagen announced last year that they would operate their factories at low levels because supply currently exceeds demand.