The Dutch market for electric vehicles (EVs) is collapsing as consumers hesitate to buy due to rising costs and reduced government incentives, as reported by AD. Without immediate intervention, sales could grind to a halt, industry experts warn.
According to the EV Monitor 2024 from automotive industry group Bovag, the share of new electric cars sold to private buyers fell from 32 percent at the start of 2024 to just 26 percent by the end of the year. Sales have continued to drop in 2025, with electric vehicles making up only 23 percent of new car purchases by individuals in February.
Consumers are increasingly reluctant to buy EVs due to higher costs. The Dutch automobile association ANWB recently found that the price per kilometer for an electric car now exceeds that of a gasoline vehicle. The Dutch government has also scrapped purchase subsidies for new electric cars and introduced road tax charges for them, further reducing financial incentives.
Additionally, many potential buyers believe that EV prices will drop further in the near future, leading them to delay purchases. “People think that if they buy an electric car now, they could get a better one for the same price or less next year,” Bovag reported. “This uncertainty is keeping consumers on the sidelines.”
Bovag President Peter Niessink argues that the government is scaling back incentives too soon. “Private buyers need long-term certainty about the costs of owning an EV,” he said. “Road taxes should not change every year. The purchase subsidy was cut too quickly, and it should be reinstated for used electric cars. We are still in the early phase of EV adoption, and we cannot afford to remove support this fast.”
Niessink also noted that Norway, where EV adoption is widespread, still heavily subsidizes electric cars. “We are not Norway. The Norwegian market is deeply subsidized, and that has driven their success. The Dutch government must reconsider its approach.”
The slowdown in private EV sales is also hitting the secondhand market. Used electric cars are sitting unsold, forcing dealers to sell them abroad instead. For the first time, the Netherlands became a net exporter of used EVs in 2024, reversing a years-long trend of importing them. While 9,000 secondhand EVs were imported in 2023, the country exported 6,000 in 2024.
Most of these exports involve larger, high-end electric cars, many of which were originally purchased through government-subsidized corporate lease programs. Meanwhile, Dutch buyers are mainly importing smaller, cheaper EVs.
Unlike private buyers, businesses continue to adopt electric vehicles at a high rate. In 2024, 53 percent of new lease cars were electric, up from 34 percent two years earlier. Many employers now require or encourage employees to drive electric as part of corporate sustainability goals. Additionally, company lease EVs still benefit from lower tax rates compared to gasoline models.
Another looming issue is the weight-based road tax system. EVs are heavier than gasoline-powered cars due to their batteries, making them subject to higher road taxes. Bovag warns that if the Dutch government does not implement a weight correction, EV owners will be “penalized for making a sustainable choice.”
Despite advances in EV technology, with many models now offering 500 kilometers of range and longer battery life, the Dutch government’s policy changes are slowing the shift to electric mobility. “EVs are better than ever, whether they come from Europe, Korea, or China. Battery life is no longer a concern,” Bovag stated. “But if the government does not act, we risk stalling the transition to a greener fleet.”
