Netherlands is experiencing a boom in all-electric car sales, but changes on the horizon will bring another rollercoaster.

The market more than doubled so far this year and as it turns out, Tesla is the market leader with Model S on top (1,763 YTD) and Model X in 4th (1,045).

The appetite for Teslas, or in general expensive all-electric cars, is explained by upcoming changes of the BiK tax from 4% to 22% for BEVs that costs more than €50,000 from January 1, 2019 (the 22% applies only to amount above amount of €50,000).

As the overall cost will then be significantly higher than it is right now, the second half of the year should see an explosion in purchases of more expensive all-electric cars. On the other hand, following changes, there will be a collapse of sales of BEVs above €50,000 early next year.

We saw similar behavior for the plug-in hybrid market a few years ago (see peaks on the graph when PHEVs were very attractive from a tax point of view).

IEVs reader Seth provided us with some example calculations that shows how the 22% BiK tax affects BEVs (above the amount of €50,000):

Plug-in electric car sales in the Netherlands - June 2018

Plug-in electric car sales in the Netherlands - June 2018

"Regarding the Tesla sales in the Netherlands: There is currently a rush for Tesla as well as Jaguar with the I-Pace to get their product shipped before 1-1-2019 when the new BEV tax limit of 4% upto 50k euro becomes effective. This also makes the Jaguar I-Pace (starts at 83k) a difficult proposition.

You add 4% over 50k (2000) and 22% over the remaining 33k (7260) to your income. This means a net cost of about (9260/2) 4630 euro a year, or 385 euro's a month. For comparison, that is cheaper then a VW Passat (diesel, with 150hp).

So yeah, the market share won't be nill, but it will definitely take a hit. If the current premium Tesla Model 3 at 59k euro would enter the market it would still be cheap at ((2000 + 4400)/12)/2 = 265 euro/month. For basically a 300hp sedan."

Hat tip to Seth!!!