The sale of all electric vehicles in the Netherlands to private households is at risk of collapsing since the government stopped subsidies, the Parool reported on Tuesday.

In 2024, electric cars accounted for 26% of all new car sales, down from 32% in 2023, and this year sales have declined further to 23%, according to figures from motoring organisation Bovag.

Motoring organisation ANWB previously suggested that electric cars are now more expensive to run than petrol-driven vehicles. That, combined with the end of various subsidies and tax breaks, means consumers are now waiting to see if prices will come down, Bovag said.

“Consumers want long-term security about the cost of running an electric car,” Bovag chairman Peter Niesink told the paper. “And that means certainty about vehicle taxes, not changes every year.”

Second-hand electric car sales have also stagnated. In 2023, the Netherlands had a net import of 9,000 electric cars, but last year, there was a net export of 6,000.

The subsidy for purchasing a new electric car ended in 2024, and from 2025, EV owners have to pay more sales tax. In addition, motor vehicle tax on EVs will gradually increase, and in 2026, the benefit-in-kind tax advantage for business drivers will disappear entirely.

“The purchase and use of an electric car must remain affordable for private households,” Niesink said. “Practical obstacles must be removed: consumers need certainty about charging infrastructure, grid capacity, and battery lifespan.”

Nevertheless, the overall market for electric cars is still growing due to lease car sales, according to the  Bovag figures. EVs now account for 53% of company car purchases.

In 2023 and 2024, the Tesla Model Y was the best-selling new car in the Netherlands, with just under 2,000 registered last November. However, by January, new orders had declined to below 500, the AD reported last month.