BOVAG: electric car gaining ground, but uncertainty inhibits private individuals
Electric car sales in the Netherlands continue to grow, but almost exclusively within the business market. Among private buyers, demand is actually decreasing. This is according to the BOVAG EV Market Monitor 2024.
In 2024, 35 per cent of newly sold cars were electric vehicles, up 4 per cent on the previous year. However, this growth comes almost entirely from the business market, where the share of EVs rose from 34 to 53 per cent in two years.
In the private sector (purchase and private lease), the market share of new EVs actually declined. Over the past 18 months, the share decreased from 32 to 26 per cent. In February, it dropped further to 23 per cent.
Uncertainty about residual values
Although price reductions on new electric cars seem favourable, there is uncertainty among consumers about residual values, according to BOVAG. In addition, they are more reluctant to purchase due to rising charging rates and the lack of home charging options.
The industry association calls the second-hand market of great importance for scaling up electric cars. Currently, 80 per cent of households buy a used car rather than a new one, leaving private demand here too.
Measures needed
The government expects an increase in the number of EVs in 2025 and 2026, but that remains to be seen, according to BOVAG. At the end of 2024, the purchase subsidy was abolished and, since 2025, the bpm rate is almost seven hundred euros. Next year, the additional taxable benefit for business drivers will also disappear completely.
BOVAG warns that without measures, the private market will grind to a halt. The organisation believes a predictable and balanced government policy is needed to get private buyers on board. They advocate making both buying and driving an electric car affordable, by abolishing bpm, weight compensation in motor vehicle tax and transparent charging rates at public charging stations, among other measures.
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