Electric cars are no longer cheaper to run than petrol or diesel-fuelled vehicles after the government wound down subsidies and tax breaks designed to encourage drivers to switch.

The latest assessment by motoring organisation ANWB finds that electric cars cost almost 76 cents a kilometre to run, taking in the cost of fuel, maintenance, wear on tyres and depreciation. Petrol-powered cars are around 9 cents per kilometre cheaper.

The high cost of electric vehicles, which cost €46,000 on average to buy new, has been offset by subsidies and tax benefits, but the new cabinet has watered down previous commitments to stimulate the transition to renewable energy.

Fully vehicles have been exempt from vehicle tax until this year, but in 2025 they will have to pay 25% of the full rate and from 2026 they will pay 75%. The full rate, which applies from 2030, will be higher because vehicle tax is based on weight and electric batteries add around 400kg to the average car.

The government ended the €3,000 subsidy for new electric vehicles and €2,000 for second-hand vehicles this year and the funding for 2024 has already been used up.

Electric vehicles also depreciate in value faster than petrol and diesel-fuelled cars because rapid improvements in technology, such as batteries that last longer and recharge more quickly, make second-hand models less attractive.

The results can be seen in sales of electric cars, which have slowed in the last year. Fully electric cars account for one-third of all new car purchases, but the market share grew by just 3% in the last year.

“The tax rates for the coming years have made people uncertain about the potential costs of an electric car and led them to tighten the purse-strings,” ANWB CEO Marga de Jager told AD.nl.