Electric Vehicles Accelerate in Popularity; Registrations soared in January

Dutch consumers are increasingly turning to electric vehicles (EVs), with January sales outpacing those of traditional petrol and diesel cars, a trend bolstered by government efforts to reduce the use of internal combustion engines. Registrations of new passenger cars in the Netherlands advanced 5.5% to 34,477 vehicles in January 2024, compared with the same month the previous year, driven by a notable 64% surge in battery-only EVs and a 21% rise in plug-in hybrids, figures from auto industry groups BOVAG, RAI Association, and RDC indicated Thursday.

The surge in EV popularity persists even as supply chain disruptions affect the production of some leading electric models. Tesla's Model Y compact SUV topped sales charts in January, with Volvo's XC40 trailing close behind.

Fully electric vehicles claimed a 25.3% share of the new car market in the Netherlands last month, a significant increase from the 15.5% recorded in January 2023. Including hybrids, electrified vehicles now constitute nearly 70% of total sales, up from 51% a year prior.

Although the car market experienced overall growth, the registration of petrol and diesel vehicles plummeted by 33% and 80%, respectively, compared with January of the previous year. "The electric vehicle is increasingly prominent, despite prevailing market uncertainties," said Bert de Kroon, president of BOVAG's dealership division. He noted that current high inventory levels and reduced waiting periods for new cars could accelerate widespread adoption.

Toyota sold the most vehicles out of any automaker in January, followed by Hyundai, Skoda, Volkswagen and Volvo. After the Tesla Model Y and the Volvo XC40, the top selling models were the Hyundai Kona, Skoda Octavia and Volkswagen Polo. The Model Y and XC40 obviously led the electric vehicle sales last month, followed by Tesla's Model 3, the Jeep Avenger and the Skoda Enyaq.

In an ambitious move, the Dutch government has set a target to discontinue sales of new petrol and diesel vehicles by 2030, offering purchase subsidies and tax advantages for electric company vehicles to fuel demand. Simultaneously, stricter European Union emission standards are compelling car manufacturers to expand their electric offerings.

Industry representatives warned that sustaining EV sales growth hinges on several factors, such as enhancing the charging infrastructure, maintaining vehicle affordability, and providing incentives beyond 2025. Critics have raised concerns over the current inadequacy of the Netherlands' charging network to support a fully electric vehicle fleet.