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Citizens of the Netherlands, who want to buy electric cars after July 1, 2020, will receive up to €4,000 ($4,425) from the government to cover their expenses. Is it good news for Tesla?
The Netherlands decided to support a greener and ecological transport in 2020. As per the announcement, the country plans to award drivers with the money for buying a new electric vehicle (EV). This will be practiced with private buyers nevertheless they decide to buy new or used electric cars.
According to a report from Dutch news organization RTL, the Netherlands citizen who buys a new electric car after July 1 this year will receive €4,000 ($4,425) towards its cost from the government. However, if the buyer decides to have a used car instead, he or she will be eligible for a donation of €2,000 ($2,211).
Focus at the Lower End of the Market
As per the official announcement, this €4,000 subsidy is only eligible for vehicles that cost up to €45,000 ($49,744). That means the measures are focusing at the lower end of the market. The government is trying in this way, to get drivers to stop using small petrol and diesel vehicles and start driving some greener alternatives, which are typically less expensive.
In order to be legit to get the used EV subsidy, the car has to comply with the government standards. It also has to be bought from a specialist dealer and not a private person. The government said that if someone buys the car from the classified ads in a car magazine or internet, he or she will not get the money. As per the report, this measure is made in order to stop potentially deceptive claims for the grant.
Also, the Dutch government is reportedly looking into supplying an extra non-financial stimulus for buyers of electric cars. The government is trying to find out the ways of how to give guarantees on software updates and EV battery longevity.
Full details of the subsidy scheme are expected to be known in the next few weeks.
However, this is not a long term measure because, as more electric cars reach the market over the next five years, the subsidy is to be removed by 2025.
UK Joining In
The Netherlands is, therefore, the first country that plans to offer financial supports in order to get people to stop using gasoline cars and start driving electric ones.
The UK government’s arrangement will give out a maximum of £3,500 ($4,570) for private buyers to put towards the cost of a “plug-in” car.
So, if you’re from the Netherlands and want to replace your gasoline car with an electric one, in July is your chance.
Per the last info, global cumulative sales of highway-legal light-duty plug-in vehicles reached 2 million units at the end of 2016, 3 million in November 2017, and the 5 million milestones in December 2018. Sales of plug-in passenger cars achieved a 2.1% market share of new car sales in 2018, up from 1.3% in 2017, and 0.86% in 2016. The PEV market is shifting towards fully electric battery vehicles. The global ratio between BEVs and PHEVs went from 56:44 in 2012, to 60:40 in 2015, and rose to 69:31 in 2018.
As of December 2018, China had the largest stock of highway legal light-duty plug-ins with over 2 million domestically built passenger cars. China also dominates in plug-in electric bus deployment, with its stock reaching 343,500 units in 2016 out of global stock of about 345,000 vehicles. As of September 2018, the United States had one million plug-in cars, with California as the largest U.S. plug-in regional market with 537,208 plug-in cars sold up until December 2018.
Will It Affect Tesla Sales?
These days Tesla is probably one of the most widely discussed companies as its performance ahs really rocked the stock market. Though TSLA stock hasn’t managed to reach the $1,000 mark (but it tried) and has fallen back to $727, the company is still a leader. And not only on the stock market.
Though other carmakers have already announced their intentions to enter the EV market game (like Ferrari) or even have presented their eco-friendly cars (like Aston Marton has done), Tesla is an amazingly strong player. So, we can expect to see the growth of its sales in Europe with the help of the governments.