Subsidy pot for used electric cars is empty

Source photo: Pixabay / Paul Brennan
Wouter Hoeffnagel
Wouter Hoeffnagel
02 September 2021
3 min

The subsidy pot for used electric cars has run out. About twice as many individuals switched to buying a used electric car with subsidy in 2021.

State Secretary Steven van Weyenberg (Infrastructure and Water Management): "Many people look at the second-hand market first when choosing another car. That market is really taking off, which is important. Of course, I would also like more people to be eligible to buy an electric car with a subsidy for the rest of this year as well. But I think it is particularly good news that so many people are already choosing to drive electric cars with this boost. In the coming years, we want that to become attractive to many more people."

Making electric driving more attractive

The subsidy is aimed at individuals looking to buy a compact mid-range electric passenger car. The scheme aims to make electric driving more attractive for individuals. The Ministry of Infrastructure and Water Management (I&W) points out that while electric cars are cheaper to use, they are more expensive to buy. With the help of the subsidy scheme, the government wants to make electric driving attractive for private individuals.

For some time, European governments have been encouraging the purchase of electric vehicles through subsidies. However, the Netherlands is the first European country to provide subsidies for the purchase of used electric passenger cars. The subsidy amounts to 2,000 euros. Conditions include that the vehicle is purchased from a RDW-approved car company.

Already available for longer

The subsidy has been available for some time. In 2020, a total of 3,000 individuals purchased a used electric car with a subsidy. The budget was not fully used then; there were fewer applications than possible. This year, the picture is different: the subsidy pot is now completely empty.

"This year, the budget has been fully used; 6750 individuals took advantage of the scheme. The scheme will continue till 2025. For this year 13.5 million was available for used electric passenger cars, for next year 18.3 million subsidy budget is planned," writes the Ministry of I&W in a press release.

Over 2,800 new electric vehicles sold

Besides second-hand electric vehicles, demand for new ones continues to rise, according to figures from the Netherlands Enterprise Agency (RVO). For instance, 2,883 more fully electric vehicles were sold in June 2021 than in the same month a year earlier. Sales figures for hybrid vehicles are also on the rise, falling 1,788 higher than a year earlier.

The top five best-selling passenger car models include all-electric models only and are as follows:

  1. Ford Mustang Mach-E
  2. Kia Niro
  3. Skoda ENYAQ IV 60
  4. Tesla Model 3
  5. Renault Zoe

Market share of hybrid vehicles rises faster

Looking at market share, it appears that the market share of hybrid vehicles is rising faster than that of electric vehicles. For instance, 8.9% of all passenger cars sold in the January-June 2020 period were fully electric. This percentage increased by 0.9% to 9.8% over the same period this year. The share of hybrid vehicles increased by 6.5% from 3.7% to 10.1% in the same period.

The RVO is also examining the Netherlands’ performance in the field of electric mobility at an international level. According to figures from the IEA, in 2019 the Netherlands, together with Norway, Iceland, Sweden and China, was among the top five countries where electric passenger cars accounted for more than 1.5 per cent of the total vehicle fleet. Furthermore, no other country has the same density of charging points as the Netherlands.

Author: Wouter Hoeffnagel

Wouter Hoeffnagel

Wouter Hoeffnagel is a freelance journalist and copywriter, with interests in both manufacturing industry, IT and the intersection between these topics. He writes a wide range of texts on these topics, ranging from background articles, interviews and news items to blog posts, white papers, case studies and website texts.