The rise in popularity of electric cars will cost the treasury hundreds of millions of euros a year in lost income, according to research by the Roland Berger consultancy for the Volkskrant.

Government policy to stimulate the use of electric cars, such as lower sales and road taxes, will cost the treasury almost €600m a year within three years’ time, the consultancy says.

Some 4% of new cars bought in the Netherlands are completely electric but that is set to rise, manufacturers say, because cheaper versions will soon start rolling off the production line.

The consultancy expects some 10% of the Dutch car fleet to be electric by 2021.