People in the Netherlands are still hesitant to buy electric cars

Dutch consumers are cautious about purchasing an electric car. This will cause the sales of new vehicles to stagnate in 2024, and economists of the ING predict that the level before the coronavirus pandemic will not be reached.

The fact that Dutch people are not yet replacing their diesel or petrol cars in large numbers and instead choosing a new electric model is because there are not enough affordable models for the middle class. In 2023, a third of subsidies offered to private individuals to assist in these purchases were not claimed, according to ING.

In addition, uncertainty about motor vehicle tax after 2025 plays a role. If there are no changes, then a driver of an electric car will lose 500 euros more than they would with a diesel or petrol car due to the weight of the electric vehicles, said the bank.

It also matters whether you can charge your electric car at home or not, says ING economist Rico Luman. "The cost advantage of electric cars is largely related to the possibility of cost-effective charging at home (or at work). Drivers who can do this often also have an extra advantage because home charging is often combined with solar panels or the use of dynamic electricity prices."

According to ING, companies are feeling increasing pressure to be more environmentally friendly and electrifying their fleets. Large companies, in particular, are doing this mainly because CO2 emissions now also have to be reported. This means that the share of fully electric vehicles is about 32 percent. The Netherlands is still ahead of the European average of 15 percent.

Economists expect around 370.000 cars to be registered in 2024, which is much less than in 2019, when 446.000 were registered. Last year, car sales caught up, but this year, that recovery is already over.