Half of EV drivers will opt for a petrol car if tax benefits disappear

Electric car adoption is fast in the Netherlands, but that’s largely due to the tax breaks EV drivers receive. Because if they disappear, half of the plug-in car drivers simply decide to go back to a petrol car.

After 2025, the benefits for electric cars will end and owners and lessee drivers only have to pay road tax and a higher surcharge. And these are much higher for an electric vehicle than for a comparable fuel model.

MRB and addition higher for electric car

Electric cars are more expensive than cars with petrol or diesel engines and are several hundred kilos heavier. The latter affects the amount of vehicle tax. The higher price means more extra.

Half of EV drivers will choose a petrol car again

Research by the Association of Electric Drivers, in collaboration with the University of Groningen, shows that half of private individuals and 44 percent of business drivers will return to a petrol car when the tax benefits disappear.

“We have never seen financial considerations play such an important role when choosing an electric car,” Maarten van Biezen of the Association of Electric Drivers told De Telegraaf.

That seems a bit naïve to us, given that the Dutch car market has been driven by tax breaks for years. Think of the sudden (and temporary) popularity of the Mitsubishi Outlander PHEV and economical diesels like the Volkswagen Polo Bluemotion.

“The purchase price of electric cars will be lower than that of petrol cars, but that’s not yet in 2025,” continues Van Biezen. “So the purchase price does not yet compensate for the higher costs for mrb and add-on.”

The Dutch climate goals are in jeopardy

If, in 2025, half of all electric drivers actually opt for a fuel model again, the Dutch climate targets will be at risk, says Van Biezen.

The Association of Electric Drivers proposes not to include the weight of the battery in vehicle tax and to keep the surcharge lower as long as the purchase price of electric cars is still higher than that of petrol and diesel vehicles.