Government scraps plan to lower electric car subsidies; Concerned about waning interest

The subsidy for new electric cars will not drop to 2,550 euros in 2024 but will remain at 2,950 euros, State Secretary Vivianne Heijnen (Infrastructure and Water Management) wrote in a letter to parliament. She called it worrying that enthusiasm for the subsidy is declining among citizens. Changes in motor vehicle tax and inflation make it less financially beneficial to own an electric car.

The subsidy for new fully electric cars amounted to 4,000 euros in 2021 and was then gradually lowered. The idea was that electric cars would become cheaper over the years and less subsidy would be needed to persuade people to make the climate-conscious purchase. Heijnen said that “within the options I still have” after the fall of the Cabinet, she wants to do something for buyers of electric cars who have been disappointed. It is up to the new Cabinet to set the measures for the period after 2025, she said.

The Royal RAI Association appreciates the State Secretary’s step. “However, this is a small step in the right direction; more action is urgently needed. Such as continuing subsidies from 2025 and tax incentives, responds Huub Dubbelman, chairman of the passenger car section at the trade association.”

The organization believes that “mobility can and should contribute to reducing CO2 emissions.” At the same time, driving should also remain affordable. “To really accelerate the transition to sustainable mobility, the purchase of new clean and economical cars must be accessible to more people.”