Volkswagen: Demand for electric cars falls due to high electricity prices

According to Volkswagen, the high price of electricity has impacted demand for electric cars in recent months. “Sales are still increasing, but have gotten out of hand,” said Thomas Schmall, head of the parts division at VW.

Due to the high price of electricity, a full battery is sometimes more expensive than a full tank. You can usually drive a little further with it, but the advantages for the variable loads if you don’t charge on the home charger hardly outweigh driving with diesel or petrol.

The Netherlands still have advantages for electric cars

Although electric cars still have the advantage of not having to pay vehicle tax until 2024, the high purchase price deters many consumers from buying an electric car. For many Europeans it is simply too expensive.

Cheaper e-cars are the solution

Cheaper electric cars, that’s the solution. But that is easier said than done. Nevertheless, the head of the parts division at Volkswagen says: “Alternatives could be on the market as early as 2026. (..) It means smaller batteries because big batteries are expensive in small cars. An average customer drives 40 kilometers a day, so why do you need a range of 500 kilometers?”

Electric vehicles are popular in America

While demand for EVs is declining in Europe, the opposite is happening in North America. “In the past few months, demand has grown a little faster than expected,” said Schmall from Volkswagen. This is mainly due to the advantages that buyers of an electric car receive from the Anti-Inflation Act.

This Anti-Inflation Act Allows US automakers to take advantage of tax breaks when purchasing parts for electric vehicles in North America. Many European and Asian brands find unfair competition, although the lower costs are helping to stimulate electric cars in the country.

Share of electric cars in the Netherlands

In the Netherlands, 3.4 percent of all cars are currently electric. More than half (52 percent) are leased vehicles.