Number of electric cars sold fell sharply in May

The number of electric cars sold in May was considerably lower than in the same month last year, BOVAG and RAI Association reported. The trade organizations attribute the decline to uncertainty about the continuation of the motor vehicle tax discount after 2025.

Around 9,681 electric cars were registered in May, compared to almost 11,000 last year. The electric model registered most often was the Tesla Model Y, which was suitable for a market share of nearly 12 percent. Cars from Volvo and Kia were also popular.

Despite the decline in the number of electric cars sold, BOVAG and RAI Association still expect sales of 360,000 cars this year. About 158,421 cars have been registered this year up to and including May.

The Association of Dutch Car Leasing Companies (VNA) reported earlier this year that business drivers are more likely to switch from a fully electric car to a hybrid or petrol car due to the high costs.

New electric cars remain relatively expensive, which affects employer costs and the additional tax that business drivers pay. In addition, electric cars are currently exempt from motor vehicle tax, but this may no longer be the case after 2025.