Learn All About Europe’s EV Incentives

2 months ago by EVANNEX 14

EV

The European commission may implement an EV quota set for 2030. Some countries are already ahead of the curve.

EV INCENTIVES ARE GROWING ACROSS EUROPE — HERE’S WHAT YOU SHOULD KNOW

All across the globe, aggressive mandates are being set up to transition countries away from petrol and diesel cars.

In fact, according to Climate Change News, “the European commission is considering implementing an electric car quota to be achieved by automakers by 2030, according to diplomats and sources familiar with the issue. With France, the Netherlands and Britain planning diesel bans by 2040, commission officials are said to view a new mandate as a natural step.”

EV

Electric cars are growing in popularity all across Europe (Image: Ecomento)

That said, electric cars are showing significant growth in Europe. According to Vivian Zhou at the EV Box blog,

“Norway and The Netherlands are the undisputed kings of electric mobility. Together, they share a total number of over 240,000 electric vehicles on the road…. [and] half of all new vehicles in Norway are fully-electric or plug-in hybrids today. The Netherlands, on the other hand, is the world’s most advanced in the implementation of electric public transportation and charging infrastructure.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman.

EV Incentives

2017 electric car incentives in Western Europe (Source: EV Box Blog)

But it’s not just Norway and the Netherlands, “in the wake of Paris Agreement, it’s become pretty obvious that Europe’s EV market does not just evolve around its northern nations anymore. Belgium, France, Germany, and the UK are all catching up on incentives to promote clean cars that’ll help them reach those stricter emission standards. For each country, we’ve listed the three most important incentives you’d want to know about.”

Belgium

Though not much of an early adopter, Belgium is catching up… In 2016, the number of electric-car sales in Belgium almost tripled, and the number of charging points grew by 350% as compared to 2015.

  • Purchase grant: €4.000 grant in Flanders for private car owners.
  • Ownership tax: (Plug-in) electric vehicles are exempt from ownership tax in Flanders. They also pay the lowest rate of the annual ownership (circulation) tax (€74 instead of €1.900) in all three regions.
  • Company car tax: 120% for fully-electric vehicles, and 100% for vehicles emitting between 1 and 60 g/km of CO2 deductible from company expenses. Above 60 g/km, the deductibility rate decreases from 90% to 50%.

France

France made tremendous gains in electric-car numbers over the past few years. Going from less than 10,000 registered electric vehicles in 2012, to over 100,000 in 2016.

  • Purchase grant: If you swap your diesel (bought before 2016) for a fully-electric model, you’re eligible for €6.000 (environmental bonus) and €4.000 as a “thank-you for switching to electric”. If you swap your diesel (bought before 2016) with a plug-in hybrid, you’re eligible for €1.000 (environmental bonus) and €2.500 as a “thank-you for switching to electric”.
  • Ownership tax: Both fully-electric vehicles and plug-in hybrids are eligible for either a 50% discount or are exempt from the license plate tax depending on the province.
  • Company car tax: Fully-electric vehicles are exempt from this tax. Plug-in hybrids are exempt from the tax for two years.

UK

The UK government pledged a £290m sum to boost the industry of low emission vehicles. £80m of this amount is dedicated to improving charging infrastructure for electric vehicles.

  • Purchase grant: The Plug-In Car Grant covers 35% of the cost of a car (up to a maximum of £4,500 depending on the model) and 20% of the cost of a van, up to a maximum of £8,000. This is without doubt the important incentive for private vehicles in the UK. In some cases, it can reduce the total cost of electric vehicles below the cost of conventional cars! (More details)
  • Ownership tax: Fully-electric vehicles costing less than £40,000 are exempt from the annual road tax. (More details)
  • Company car tax: (Plug-in) electric vehicles emitting less than 50g/km of CO2 have their company car tax set at only 9% for 2017-18. 13% in 2018-19, and 16% in 2019-20. The tax on any diesel company car is 4-8% higher. (More details)

Germany

Home to the most beloved [and scandalous] combustion engine car manufacturers, Germany has been the slowest of the bunch in pushing pro-electric plans. But as of last year, Germany has adopted an incentive and investment program to encourage a switch to plug-in hybrids. Additionally, it has approved a push for a Europe-wide ban on combustion engine vehicles by 2030.

  • Purchase grant: €4,000 for fully-electric vehicles and €3,000 euros for plug-in hybrids. The grant applies only to cars up to a maximum list price of €60,000.
  • Ownership tax: 10-year exemption for fully-electric vehicles registered between 2011 and 2020. PHEVs pay the tax, which is lowered in proportion to their lower CO2.
  • Company car tax: 1% over the discounted car (battery) price. €300/kW (up to €8.000) discount on the list price for fully-electrics and plug-in hybrids in 2017. €250/kW (up to €7.500) discount on the list price for fully-electrics and plug-in hybrids in 2018.

The Netherlands

The Netherlands is planning to phase out all internal combustion engine vehicles by 2035. The Netherlands has
 the highest ratio of public charging points and electric vehicles. 47% of Dutch drivers often or always charge at work.

  • Purchase tax: Fully-electric vehicles and PHEVs are both exempt from this tax. PHEVs will need to pay additional fees based on the CO2 emitted. (More details)
  • Ownership tax: Fully-electric vehicles are exempt from this tax, while PHEVs get a 50% discount. High CO2 emitting vehicles of +12 years old, will need to pay another 15% on top of the tax starting 2019. (More details)
  • Company car tax: 4% for fully-electric vehicles only, 22% for both PHEVs and high CO2emitting vehicles. (More details)

Norway

Norway’s original goal was to have 100,000 electric vehicles on the road by 2020. As of last year, Norway has already exceeded this number, as there are now more than 121,000 electric vehicles on the Norwegian roads. Quite impressive for its relatively small population of just 6 million.

  • Purchase tax: No purchase tax and no VAT on the purchase.
  • Ownership tax: NOK 455 is the annual road tax for both fully-electric vehicles and plug-in hybrids, as opposed to NOK 2.820 for petrol and NOK 3.290 for diesel cars.
  • Company car tax: 50% discount for both fully-electric vehicles and plug-in hybrids.

Above: Why Norway is a leader in electric cars (Youtube: Financial Times)

And that’s not all. According to Zhou, although there are nationwide incentives, many European cities actually “go a step further to get their citizens behind the electric wheel. This means that on top of your usual financial incentives, your electric car may be eligible for extra perks, depending on the city you live in or drive by: free public parking, exemption from toll charges, access to HOV lanes and bus lanes, exemption from ferry fees, [and] free charging on public charging points.”

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Sources: EV Box Blog via EAFO / OLEV UK Government Grant / Eurostat Statistics Explained / Norwegian EV association / ICCT / RVO / EV Norway

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers. Our thanks go out to EVANNEX, Check out the site here.

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14 responses to "Learn All About Europe’s EV Incentives"

  1. Seuthès says:

    I will just enlight a little bit for France.
    The incentive system in France is calling Bonus/Mallus. A car that produce less than 21g of CO2 per km is eligible for the 6,000€ Bonus, mostly the BEV. The only PHEV that can be eligible for the 6,000€ Bonus is the BMW i3 REX.
    And to claim the 4,000€ “Super Bonus” people have swap a diesel built before 2006, to buy a BEV.

    But the system can work because ICE cars have to paid a Mallus. The minimal Mallus is 50€ but the maximum Mallus is 10,000€.
    In 2016 France had collected ~320 millions Euro and paid ~250 millions Euro. Actually the German carmakers give money to their Nemesis Tesla in France.

  2. EV4EVer says:

    If you have a look on Spanish government’s incentives system for EVs you may have a laugh attack.

    The incentives budget was so low that in 2017 lasted 48 hours.

    As a Spanish future EV buyer, it makes me sick.

    1. Anti-Lord Kelvin says:

      For Portugal, we have a 2.250 € grant for the first 1.000 pure EV cars sold this year and no purchase and owning taxes. But we still have to pay the 23% VAT at purchase. So far, up to the end of July some 850 pure EVs were sold this year here.

  3. pjwood1 says:

    Hang on. Almost finished with,

    “Learn All About Appendix Surgery”

    Feeling out-wonked, here.

  4. Prad Bitt says:

    “Agressive” would be 10% BEVs in 5 years.
    2030 is way too late.

  5. Ivan says:

    To my knowledge all these government are running massive budget deficits, handing tax money for EV cars is a travesty, when the national debt burdens for these countries is above 100% of GDP and rising; there are much better uses for the cash, if these governments truly wish to reduce CO2, they should continue to invest in better and cheaper public transport then hand billions to select, mostly rich, car buyers.

    1. HvI says:

      The Netherlands and Germany don’t run budget deficits.

    2. Leaf2012 says:

      Yes we know, poor people don’t breath air, so they do not get any benefit from less toxic exhaust…

      Have you ever noticed that cars have an exhaust pipe system that runs from the engine to the back of the car, so that the owner does not have to breath in those toxic fumes, like the people behind or on the sidewalk have to.

      Also remember that poor people don’t by new cars, they by used cars so it is important that so many as possible choose BEVs now so that there are used BEVs available in the used car market.

  6. Tom says:

    It would be really nice to have context in the article. In several places the idea of ‘no tax’ or something similar is mentioned without any context as to how much the tax would be for a normal vehicle. It is my understanding that taxes in some of these countries on new vehicles can be insanely high so the ‘no tax’ is a very large amount of money. Can we get some more of that ‘as compared to’ type info?

    1. Tom says:

      There’s some but more. And in the table/graphic perhaps include in a summary table?

  7. Benedictus says:

    In the Netherlands the car sales tax on regular vehicles is higher for cars with higher CO2 emissions (using NEDC cycle of course).

    To illustrate the difference: the Lexus LC 500 versus LC 500h is ~€ 50.000 in sales tax. This (BPM) tax is € 58.590 for regular with 263 g/km CO2 and € 8.456 for the hybrid version with 145 g/km CO2. This makes base consumer prices of 116 K for hybrid vs 166 k for the regular (this includes a 21% VAT of € 18.516 over net price). The base prices are exactly the same, both € 88.174.

    A Tesla Model S gets no additional sales tax, because of the 0 g/km CO2.

    In addition to this EV’s pay no road tax. This Lexus € 100 per month.

    After this there are some very convincing company deductibles for buying an electric vehicle, which can account for many thousands of euro’s in company tax discounts.

    And for the use of a company car for workers a yearly 4% of list price (incl VAT + BPM!) is added to taxable income in stead of yearly 22% added taxable income for cars with emissions.

    All in all these are quite substantial incentives and punishments.

    1. seth says:

      Almost have of new car sales in NL are driven by the corporate lease market where the tax tarif has been a large market disruptor over the past years.

      Our “love” for the Mitsubishi Outlander was simply because it was the only practical PHEV at the time next to the Opel Ampera in 2012 where it benefitted from the 7% tax tarif. Full electric was 0%, but that was limited to the Mitsubishi i-MiEV and Nissan Leaf. So there wasn’t much of a choice.

      By the time that the VW PHEV family arrived and fully available the PHEV tax was already raised to 15%. You see swaths of registered VW GTE/Outlander models on december 2016 just before the phase out of the 15% tax tarif.

      One of the inital problems with the plan was that small “eco” diesels benefitted from 14% tax for lease and no road tax for private ownerships. This was far too big of a succes and cost the government far more then they were willing to do. In retrospective it was not the right thing to offer tax cuts on diesels, but hey, it was 2012. Enormous amounts of VW 1.2TDI models were shipped. Ironically, this is where most of the government budget went. As much as we like to diss on those electric cars.

      Another tabloid article was about all those cars being exported out the country after the lease term was done was somewhat inflated. We have over 25k Mitsubishi Outlanders in NL, and from those about ~100 per month are exported out of the country. It will take a while before they all leave because even private owners want something that can tow the caravan (we love us some caravans) and still get to work cheaply.
      https://www.rvo.nl/onderwerpen/duurzaam-ondernemen/energie-en-milieu-innovaties/elektrisch-rijden/stand-van-zaken/cijfers
      So, yes, 25% of our exported cars is “electric”, but in total numbers it’s a drop on a plate. Numbers are hard m’kay.

      Meanwhile, electric cars from france are also imported into NL for private ownership, so it goes both ways. Yay for the EU making it easy to export and import. It also helps that even on imported electric cars no purchase tax is calculated (just like new).

      So it’s now 2017, and with the current incentives and relatively low numbers I can see the government keep this up for quite a while before running over budgets.

  8. Knut Erik Ballestad says:

    In norway it also is a Bonus/Mallus kind of setup.

    All non-polluting cars are exempt from the 25% sales tax that other cars has to pay (Meaning pure BEV’s and H2 cars are exempt)

    All cars that pollute have to pay sales tax of 25%, but in addition there is a hefty ‘registration fee’ that is mainly based on vehicle weight and NOx+CO2 emissions according to the NEDC tests.
    – So a compact ICE vehicle easily doubles in price after registration fee and sales tax are added, while a BEV gets no taxes at all.

  9. moarn says:

    About incentives in france there is few mistakes :
    There is 6000€ for buying any EV. And an additional 4000€ if the buyer destroys a diesel he personally owned for more than a year (mistaken with 2016) IF this diesel has been made BEFORE 1st January 2006 (so a 11 year old diesel or more).

    Note: The idea is that the Diesel gain mandatory particulate filter only in 2010, and before that diesel around 2000 where truly dirty.
    Right now model diesel exhaust contains a little more Nix, but less CO2 and far less particulate than any direct injection gasoline cars which still don’t have particulate filter. Guess which is the better ‘fighter’ against Global warming ?

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