Thursday 18 August 2022

More car owners switch to electric as prices fall and subsidies go up


Electric cars have become increasingly popular with private buyers since the first government subsidies came into effect in 2020.

Figures compiled for auto trade organisations RAI Vereniging and Bovag showed that individual buyers made up 21% of new electric car sales in 2020, compared to 12% in 2019.

The total number of electric cars sold went down by 13%, largely because production was hampered by a global shortage of semiconductor chips. Industry experts fear the problem could be made more acute by the war in Ukraine.

The figures also show a 56% increase in private sales since the start of 2022, when the total subsidy fund went up to €71 mn, while total sales – including business customers – have gone up by 183%.

At the same time the vehicles have become more affordable, with the average price for a new car coming down from €79,000 to €51,000 in the last five years. That has cut the individual subsidy for a vehicle from €4,000 to €3,350, allowing more buyers to apply.

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