Mar 5, 2020 - 02:37 pm

The Netherlands goes for EV purchase subsidies

The Dutch government has now confirmed the rumours of a planned purchase subsidies for privately used e-cars from July and has provided further details. Hybrid cars and vehicles above a list price of 45,000 euros will not be considered. However, electric used cars will be considered.

Those wanting to purchase an electric vehicle in the Netherlands will now be beckoned by a subsidy of 4,000 euros for the purchase of new electric cars with a list price of between 12,00 0 and 45,000 euros and a minimum range of 120 kilometres. The new subsidy rates include a bonus of 2,000 euros for used electric cars. The following applies to leasing contracts: If the leasing contract is terminated within four years, the subsidy will also be discontinued and will be paid out in monthly instalments. Owners who buy another car within three years will have to repay part of the subsidy.

To prevent misuse, the subsidy is only available when buying or leasing through an approved dealer. Each person can also apply for a subsidy only once. Since the purchase prices for e-cars will decrease in the long run, the subsidy amount for new cars will also decrease in the coming years, while the 2,000 euros for used cars will remain at that level.

A governmental consultation phase for the subsidy program will run until the end of March, so there may still be adjustments. The programme will probably be finally adopted in May or early June. Electric cars purchased or privately leased from that date onwards will then be entitled to the subsidy, which can be applied for from 1 July onwards from the Netherlands Enterprise Agency (RVO).

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The Netherlands is among the first countries in Europe to introduce a subsidy for the purchase or leasing of used electric cars. The crux of the matter is the condition of the battery, and measures addressing this can only be speculated about so far. Stientje Van Veldhoven, the Dutch Minister for the Environment and Housing, is considering introducing a battery check for used cars.

Currently, the battery in used cars is covered by a guarantee issued in the Netherlands by the BOVAG (BOnd Van Automobielhandelaren en Garagehouders) car association. However, in order to ensure greater safety, the association will now draw up such a uniform battery check.

“An electric car must be accessible to many more people than just business people,” Van Veldhoven comments on the political initiative. “There are more and more electric cars on the market and fortunately, they are becoming cheaper and cheaper. But a lot of people have a stomachache about the purchase price.” With the new regulation, the government wants to lower this threshold, both for people who want a new car and for those who choose a clean used car. “Especially for the latter category, it is also important that there is now more safety about the battery.”

The planned subsidy is part of what is called the “Klimaatakoord” (climate agreement), with which the Netherlands aims to reduce its CO2 emissions by 49 per cent by 2030 compared to 1990. Against this background, electric mobility is to be promoted with around 250 million euros by the end of 2025. The idea of boosting the purchase of electric cars via reduced-price loans was rejected in favour of the subsidy because the implementation was less complicated.

In the Netherlands, there have already been successful promotional measures. Last year, the Tesla Model 3 sold better than a VW Polo and is largely responsible for the fact that the Netherlands will have achieved an e-market share of 15.0 per cent in 2019 (after 6.0 per cent in 2018). One of the reasons for the popularity of the Tesla was tax breaks on leasing. With an entry-level price of 48,900 euros in the Netherlands, Model 3 remained just below the limit of 50,000 euros, above which a tax of 22 instead of four per cent must be paid on the leasing rate. However, this special leasing tax regulation is apparently to be abolished soon – which further increased the rush for Model 3s at the end of the year.

With reporting by Cora Werwitzke.

nieuwsienw.nl (in Dutch)

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Found on electrive.com
https://www.electrive.com/2020/03/05/the-netherlands-goes-for-ev-purchase-subsidies/
05.03.2020 14:20