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Plug-in electric vehicles in the Netherlands

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The Dutch plug-in market was dominated by plug-in hybrids until 2016, when the tax rules changed after it became apparent many users rarely used the electric motors and only bought the cars for their tax advantage. In 2019, plug-in electric passenger cars had a market share of 14.9%, and rose to 24.6% in 2020, with battery electric vehicles dominating sales in both years. As of 31 December 2021, there were 390,454 highway-legal light-duty plug-in electric vehicles in use in the Netherlands, consisting of 137,663 fully electric cars, 243,664 plug-in hybrid cars, and 9,127 light duty plug-in commercial vehicles. The fleet in circulation of plug-in electric passenger cars represented 4.3% of all passenger cars in Dutch roads at the end of 2021, up from 3.1% in 2020.

As of December 2012, the Netherlands was the country with the highest ratio of slow charging points to electric vehicles (EVSE/EV), with a ratio of more than 0.50, while the U.S had a slow EVSE/EV ratio of 0.20. The Netherlands' mix of slow and fast chargers has allowed it to become the country with the highest number of charging point per capita in the world. As of 31 December 2016, there were 11,768 public slow charging points available 24/7, 14,320 slow charging point with limited public access, 612 public and semi-public fast charging points, and over 72,000 private charging points.

Government incentives

Considering the potential of plug-in electric vehicles in the country due to its relative small size and geography, the Dutch government set a target of 15,000 to 20,000 electric vehicles with three or more wheels on the roads in 2015; 200,000 vehicles in 2020; and 1 million vehicles in 2025. The first government target was achieved in 2013, two years earlier, thanks to the sales peak that occurred at the end of 2013. According to official figures, 30,086 plug-in electric vehicles with three or more wheels have been registered in the country through 31 December 2013.

Initially, the Dutch government set incentives such as the total exemption of the registration fee and road taxes, which resulted in savings of approximately €5,324 for private car owners over four years, and €19,000 for corporate owners over five years. Other vehicles including hybrid electric vehicles were also exempt from these taxes if they emit less than 95 g/km for diesel-powered vehicles, or less than 110 g/km for gasoline-powered vehicles. The exemption from the registration tax ended on January 1, 2014, and thereafter, all-electric vehicles pay a 4% registration fee and plug-in hybrids a 7% fee.

In addition, the national government offers through the Ministry of Infrastructure and the Environment a €3,000 subsidy on the purchase of all-electric taxis or delivery vans. This subsidy increases to €5,000 per vehicle in Amsterdam, Rotterdam, The Hague, Utrecht, and Arnhem-Nijmegen metropolitan area. An additional subsidy is offered by several local government for the purchase of full electric taxis and vans, €5,000 in Amsterdam and €3,000 in Limburg and Tilburg.

In Amsterdam EV owners also have access to parking spaces reserved for battery electric vehicles, so they avoid the current wait for a parking place in Amsterdam, which can reach up to 10 years in some parts of the city. Free charging is also offered in public parking spaces. EV owners in the city of Rotterdam are entitled to one year of free parking in downtown and enjoy subsidies of up to €1,450 if they install a home charger using green electricity. The city also introduced in 2014 a scrappage program to remove old polluting vehicles to improve air quality in the city. Rotterdam offers a €2,500 incentive for business buyers to replace the old vehicles with all-electric vehicles. The subsidy is only available to the first 5,000 applicants that buy an eligible vehicle before the end of December 2013.

Other factors contributing to the rapid adoption of plug-in electric vehicles are the relative small size of the country, which reduces range anxiety (the Netherlands stretches about 100 mi (160 km) east to west); a long tradition of environmental activism; high gasoline prices ( Europe per litre compared to 40.4 eurocents per kWh as of October 2023), which make the cost of running a car on electricity substantially cheaper; and also some EV leasing programs provide free or discounted gasoline-powered vehicles for those who want to take a vacation driving long distances. With all of these incentives and tax breaks, plug-in electric cars have similar driving costs than conventional cars.

Initially, sales of plug-in electric car were lower than expected, and during 2012 the segment captured a market share of less than 1% of new car sales in the country. As a result of the end of the total exemption of the registration fee, the segment sales peaked at the end of 2013, and plug-in electric car sales reached a market share of 5.34% of new car sales in 2013. The total cost of the tax exemptions for the Dutch treasury of the more than 22,000 plug-in electric vehicles sold in 2013 was estimated at €500 million (US$691 million).

EV car sharing

On November 24, 2011, Amsterdam became the fifth city in the world with a Car2Go carsharing service, and the first in Europe with an all-electric fleet. A fleet of 300 Smart electric drives is available on-demand. As of September 2012, these Car2Go vehicles and other electric cars in Amsterdam had access to more than 320 charging stations in the city area. The number is expected to increase significantly up to 1,000 by end of 2012.

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