Comparing the Top five European Countries For Electrical Vehicle Adoption

Behind China, many consider Europe a hotbed for electrified vehicles.

While overall European sales numbers were only up 13%, and exponential growth will be required to meet Europe’s aim of ‘8 million EVs by the end of 2020,’ significant milestones were hit in 2016.

By the end of the year, Norway, the Netherlands, and France each achieved cumulative plug-in electrified vehicle (PEV) sales of more than 100,000. In Norway, plug-in electrical vehicles even accounted for more than 33% of fresh car registrations.

Norway, the Netherlands, France, the United Kingdom (UK), and Germany account for 82% of the cumulative sales of PEVs in Europe, and we can take a look at these top five countries to better understand what’s working and what isn’t.

In this article, we survey each country’s incentives, energy costs (electrical play and gasoline), and charging infrastructure.

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1) Norway

In March 2016, PEVs reached a market share of 33.5% according to Inwards EVs. Every third fresh car registration for March in Norway was a PEV!

Norway’s accomplishment is both surprising and predictable. Contradictory? Yes, but here’s another contradiction: Norway is a major petroleum producer, but almost all its electro-stimulation comes from hydro-electric power.

Norway could have gone either way – so what pointed to EVs?

In 1990, a Norwegian coalition government began its support for zero emissions vehicles (ZEVs) by introducing exemptions on purchase and import taxes. At that time, the coalition was worried with improving the local environment and the worldwide climate as well as preserving fossil fuels.

Promotion, education, and infrastructure development over the next twenty six years seem to have assured today’s successes. Norway’s original objective was to have 100,000 ZEVs on the road by 2020, but as of September 2016, HybridCars reports that there are a total of 121,330 PEVs; plus some hydrogen cell cars.

Energy Pricing

Here are some Norwegian energy prices.

Time of Use Rate: No (The brainy meter program began in late two thousand sixteen and won’t be finish until January 2019.)

Incentives

The Norwegian EV association has compiled this list of the incentives and the years in which they were introduced.

No purchase/import taxes (1990)
Exemption from 25% value added tax (VAT) on purchase (2001)
Low annual road tax (1996)
50% diminished company car tax (2000)
Exemption from 25% VAT on leasing (2015)

Indirect

No charges on toll roads or ferries (1997 and 2009)
Free municipal parking (1999)
Access to bus lanes (2005)

Norway has high taxes on high emission vehicles, which help to pay for these incentives. Norwegian PEV drivers, in a survey, identified the zero tax incentive for ZEVs as the highest motivator for their purchase.

Charging

Around 96% of electrical car owners in Norway have access to a charging station in their own home or apartment. Additionally, Norway has a well-established charging system for those without access to a charging station or for those travelling extended distances.

The world’s largest EV fast-charging station opened in rural Norway (Nebbenes about sixty km north of Oslo), September 1, 2016.

The average number of charging stations in Norway is Two.Four for every 1,000 registered vehicles. The following map shows the density of chargers.

Charging point density in Norway, Courtesy: The International Council of Clean Transportation (icct)

Two) France

France is home to a number of vehicle manufacturers, including Renault, Peugeot, and Citroen, as well as assembly plants for foreign brands. The Renault Zoe alone accounted for almost half of all French PEV sales during 2014.

France made tremendous gains in PEV numbers going from less than Ten,000 registered PEVs in two thousand twelve to over 100,000 in 2016.

Energy pricing

Here are some energy prices in France.

Time of Use Rate: Not yet (The brainy meter program began in two thousand sixteen and won’t be accomplish until 2021)

Incentives

Here’s the current offering—France doesn’t suggest indirect incentives at the national level.

Environmental bonus or feebate (bonus/malus)—It’s a one-time tax that penalizes (malus) high CO2 emitters and prizes (bonus) low emitters. It can be as high as 27% of the list price to a maximum of 6,300 euros ($6,744 US). The malus revenue finances the bonus.
Conversion—Up to Three,700 euros ($Three,961 US) applies to diesel car owners who switch to a ZEV.
There are various other vehicle taxes that are diminished by varying amounts depending the amount of CO2 emitted.

A zero emissions vehicle buyer can receive up to Ten,000 euros ($Ten,705 US) for the combined incentives. After this past December’s air quality scare in Paris, Forbes reports that this now applies to light trucks and taxis with a 1,000 euro ($1,070 US) bonus for electrified scooters.

Charging

Since 2013, the French government has provided funding to assist public charging.

Unluckily, charging availability information for France is limited. The highest density in any of the regions is 0.1 charging points for every 1,000 registered vehicles.

The following map shows the charging density according to the most reliable information from the French government’s registry.

Charging point density in France, Courtesy: icct

Three) The Netherlands

The latest Netherlands plan is to phase out all internal combustion engine (ICE) vehicles by 2035. Here’s another contradiction—the Netherlands, home of Shell Oil, proclaims an end to the ICE. However, the EV transition is understandable given that around 90% of the population lives in urban settings whose brief travel distances are favorable to PEVs.

Energy pricing

Here are some energy prices in the Netherlands.

Time of Use Rate: No (The brainy meter program began in two thousand fifteen and will be finished in 2020)

Incentives

Rather than singling out PEVs, the system is based on the level of each vehicle’s CO2 emissions. As in Norway and France, the main incentives are delivered in taxation schemes. The Netherlands has not introduced indirect incentives nationally—they’re at the municipal level.

Fresh car registration tax—It’s based on the amount of a vehicle’s CO2 emissions, and is zero for zero emission vehicles, which can save thousands of dollars compared to high CO2 emitting vehicles. Plug-in Hybrids (PHEVs) get a graduated reduction.
Ownership tax—It’s a tax based on vehicle weight and type of powertrain. ZEVs are exempt from this tax while PHEVs get a weight reduction credit.
Tax exemption on private use of company cars—Private use of a company car for more than five hundred km adds a taxable benefit to an employees income. Again ZEVs are exempt from this and PHEVs receive a graduated reduction. This is significant because around 90% of PEVs are registered to companies.

Because taxes are based on the size and weight of a vehicle, the most significant benefits are earned on large PEVs. Remarkably (but understandably), over fifty percent of the PEVs in the Netherlands are SUVs.

A Strategy Backfire

In 2016, the government diminished the amount of the exemptions for PHEVs.

This tax was significant because it could save a top-percent tax earner from 6,000 to 7,000 euros ($6,600 to $7,700) per year.

The benefit was diminished because many plug-in hybrid owners were running their vehicles on gas or diesel instead of violet wand. The government hoped that this budge would encourage more BEVs, but instead the Netherlands experienced a 73% drop in sales in the very first six months of 2016. The market recovered somewhat by year-end, but overall PEV sales declined.

Charging

The charging infrastructure in the Netherlands has been achieved with public-private partnerships. This partnership is a consortium of regional and state-owned violet wand grid operators. The average number of charging stations in the Netherlands is 1.1 for every 1,000 registered vehicles. The following map shows the density of chargers.

Charging point density in the Netherlands, Courtesy: icct

Four) United Kingdom

The UK has car manufacturers such as Vauxhall, Mini, and Land Rover as well as car assembly plants, and is the 2nd largest car market in Europe. The UK doesn’t have an official PEV purpose, but unofficially the government has a plan to make PEVs 5% of two thousand twenty car registrations.

Energy pricing

Here are some energy prices in the UK.

Time of Use Rate: No (The clever meter program began in two thousand sixteen and won’t accomplish until January 2020)

Incentives

The UK has three policies for incentives:

The Plug-in Car Grant—Covers 35% of the cost of a car (up to a maximum of £4,500 ($Five,600 US) depending on the model) and 20% of the cost of a van, up to a maximum of £8,000 ($9,900 US).
Electrified vehicles (with CO2 emissions below 100g/km) are exempt from the annual circulation (ownership) tax.
Private use of company cars—Reduces the taxable income benefit based on the CO2.

The Plug-in Car Grant is the most significant incentive for private cars—in some cases, it can reduce the total cost of EVs below the cost of conventional cars. Indirect incentives are left to the regional governments.

Charging

In 2013, the UK government announced a grant of up to 75% of the installation costs of fresh charging points. The average number of charging stations in the UK is 0.31 for every 1,000 registered vehicles. The following map shows the density of chargers.

Charging point density in the UK, Courtesy: icct

Five) Germany

Germany is the economic driver of the European Union and a manufacturer of some high-end cars such as BMW, Mercedes, and Audi. “The car is holy in Germany,” says Sascha Müller-Kraenner, the Berlin-based European representative of The Nature Conservancy.

Germany ranks last of the five in PEV registrations. However, Germany has acted in response to its commitment to the Paris Agreement because, albeit it has been successful at reducing its overall greenhouse gas emissions by about 21% since 1990, its transportation emissions have enhanced.

Energy pricing

Here are some German energy prices.

Time of Use Rate: No (The clever meter program starts in two thousand seventeen and won’t be finish until January 2032.)

Incentives

The German government has adopted an incentive and investment program to encourage a switch to PEVs. Additionally, it has approved a shove for a Europe-wide ban on ICE cars by 2030. No EU law has resulted, but it has generated some publicity in favour of PEVs.

Direct

Ownership tax—10-year exemption for BEVs registered before two thousand sixteen and a 5-year one for BEVs registered inbetween two thousand sixteen and 2020. PHEVs pay the tax, which is lowered in proportion to their lower CO2.
Grants—4,000 euros ($Four,950 US) for unspoiled electrical cars and Three,000 euros ($Three,713 US) for hybrids. The grant applies only to cars up to a maximum list price of 60,000 euros ($74,250 US).
Private use of company cars—The tax on the taxable benefit to employee income is diminished by a formula involving the capacity of electrical energy storage in the vehicle.
Minor incentives

BEVs exempt from emissions inspection
Low interest loans for companies to purchase PEVs

Indirect

Preferential or free parking, access to HOV lanes, and restricted traffic zones for low emission vehicles (electrical range of forty km or more).

Charging

Funding for electrified vehicle charging infrastructure primarily relies on private-public partnerships. The average number of charging stations in Germany is 0.Nineteen for every 1,000 registered vehicles. The following map shows the density of chargers.

Charging point distribution in Germany, Courtesy icct

What’s working?

Direct Incentives

Norway seems to have the most features that are working. As of July 2016, the number of PEVs for every 1,000 citizens in Norway was 21.52, while the United States average was 1.52—that’s 14.Two times higher for Norway.

A Norway EV driver poll identified the tax exemptions for PEVs as the number one incentive. The high tax the Norwegian government charges for high emission ICE vehicles and the exemptions for PEVs bring the PEV prices very close to those of ICE vehicles.

The revenue from those high emission taxes significantly covers the costs of the PEV exemptions. This has led to less complaining about PEV subsidies compared to North America exemptions.

The other significant thing from Norway’s practice is that the prices of PEVs have decreased even tho’ the level of exemptions has remained the same. This seems to indicate that the incentives are working to produce competitive prices.

The drop in PEV sales in the Netherlands with the reduction of a tax exemption indicates the influence of direct incentives. Additionally, France experienced a large growth in PEV sales from two thousand fourteen onward after it introduced its super bonus—PEV sales tripled each year after that.

France was clever in using their tax on high emitting vehicles to pay for the PEV incentives. It’s doing exactly what a carbon tax should do.

Energy pricing

Norway with the largest market invasion of PEVs has the lowest electro-stimulation rate and the highest gasoline prices. France and the Netherlands (the other two countries with cumulative sales of over 100,000) have similar electrical play rates albeit their gasoline prices are only slightly higher than the UK and Germany. All five countries are in the top third of European countries with the highest gasoline prices.

Indirect incentives

Indirect incentives indicate a switch of attitude, which can influence the acceptance of electrical cars in less translucent ways. Much of Norway’s success comes from attitude. The Norwegian government has been committed to PEVs for over twenty five years and the education and promotion has had a large influence. Low hydro prices combined with high gas prices must also have an influence. It’s difficult to say that the tax exemptions could be as efficient in other countries because the social outlook of Norwegians makes them more accepting of high taxation than many countries in today’s atmosphere of smaller governments.

Perhaps indirect incentives become significant when the price of a PEV approaches that of a conventional vehicle.

Charging superstructure

The two countries (Norway and the Netherlands) with the most PEVs also have the largest number of charging stations, but it’s difficult to prove that this is a determining factor when we see the rapid growth of PEVs in France. However, prevalence of anxiety around charging is also a real issue.

Charging anxiety is directly related to the availability of charging points—will there be a lineup because there aren’t enough chargers? Combine this with range anxiety (can I make it to a charger before the battery goes dead?) and countries can’t disregard the importance of infrastructure especially for highway trips.

In most of these countries, this anxiety is emerging as a growing preference for plug-in hybrids over battery electrified vehicles. Perhaps that is a reasonable expectation for a transition from ICE vehicles to unspoiled electrified, but it does reduce the total influence on emissions reductions.

Albeit this survey doesn’t expose a “silver bullet” for the adoption of electrified vehicles, it does indicate that it would be detrimental to eliminate or reduce the current incentives. Any incentive that can bring the purchase price of an EV close to that of a conventional vehicle could trigger a significant surge in sales.

The current achievements may seem far from the goals, but is it possible that one of these countries is approaching “critical mass”—poised at the bottom of the “S-curve” for an EV explosion?

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Comparing the Top five European Countries For Electrified Vehicle Adoption

Comparing the Top five European Countries For Electrical Vehicle Adoption

Behind China, many consider Europe a hotbed for electrical vehicles.

By the end of the year, Norway, the Netherlands, and France each achieved cumulative plug-in electrical vehicle (PEV) sales of more than 100,000. In Norway, plug-in electrified vehicles even accounted for more than 33% of fresh car registrations.

In this article, we survey each country’s incentives, energy costs (tens unit and gasoline), and charging infrastructure.

Want more content like this? Subscribe to our newsletter and we’ll send it right to your inbox.

1) Norway

In March 2016, PEVs reached a market share of 33.5% according to Inwards EVs. Every third fresh car registration for March in Norway was a PEV!

Norway could have gone either way – so what pointed to EVs?

Promotion, education, and infrastructure development over the next twenty six years seem to have assured today’s successes. Norway’s original purpose was to have 100,000 ZEVs on the road by 2020, but as of September 2016, HybridCars reports that there are a total of 121,330 PEVs; plus some hydrogen cell cars.

Energy Pricing

Here are some Norwegian energy prices.

Time of Use Rate: No (The brainy meter program began in late two thousand sixteen and won’t be accomplish until January 2019.)

Incentives

The Norwegian EV association has compiled this list of the incentives and the years in which they were introduced.

No purchase/import taxes (1990)
Exemption from 25% value added tax (VAT) on purchase (2001)
Low annual road tax (1996)
50% diminished company car tax (2000)
Exemption from 25% VAT on leasing (2015)

Indirect

No charges on toll roads or ferries (1997 and 2009)
Free municipal parking (1999)
Access to bus lanes (2005)

Charging

The world’s largest EV fast-charging station opened in rural Norway (Nebbenes about sixty km north of Oslo), September 1, 2016.

The average number of charging stations in Norway is Two.Four for every 1,000 registered vehicles. The following map shows the density of chargers.

Charging point density in Norway, Courtesy: The International Council of Clean Transportation (icct)

Two) France

France made tremendous gains in PEV numbers going from less than Ten,000 registered PEVs in two thousand twelve to over 100,000 in 2016.

Energy pricing

Here are some energy prices in France.

Time of Use Rate: Not yet (The wise meter program began in two thousand sixteen and won’t be finish until 2021)

Incentives

Here’s the current offering—France doesn’t suggest indirect incentives at the national level.

Environmental bonus or feebate (bonus/malus)—It’s a one-time tax that penalizes (malus) high CO2 emitters and prizes (bonus) low emitters. It can be as high as 27% of the list price to a maximum of 6,300 euros ($6,744 US). The malus revenue finances the bonus.
Conversion—Up to Three,700 euros ($Trio,961 US) applies to diesel car owners who switch to a ZEV.
There are various other vehicle taxes that are diminished by varying amounts depending the amount of CO2 emitted.

Charging

Since 2013, the French government has provided funding to assist public charging.

Unluckily, charging availability information for France is limited. The highest density in any of the regions is 0.1 charging points for every 1,000 registered vehicles.

The following map shows the charging density according to the most reliable information from the French government’s registry.

Charging point density in France, Courtesy: icct

Three) The Netherlands

Energy pricing

Here are some energy prices in the Netherlands.

Time of Use Rate: No (The wise meter program commenced in two thousand fifteen and will be ended in 2020)

Incentives

Fresh car registration tax—It’s based on the amount of a vehicle’s CO2 emissions, and is zero for zero emission vehicles, which can save thousands of dollars compared to high CO2 emitting vehicles. Plug-in Hybrids (PHEVs) get a graduated reduction.
Ownership tax—It’s a tax based on vehicle weight and type of powertrain. ZEVs are exempt from this tax while PHEVs get a weight reduction credit.
Tax exemption on private use of company cars—Private use of a company car for more than five hundred km adds a taxable benefit to an employees income. Again ZEVs are exempt from this and PHEVs receive a graduated reduction. This is significant because around 90% of PEVs are registered to companies.

A Strategy Backfire

In 2016, the government diminished the amount of the exemptions for PHEVs.

This tax was significant because it could save a top-percent tax earner from 6,000 to 7,000 euros ($6,600 to $7,700) per year.

The benefit was diminished because many plug-in hybrid owners were running their vehicles on gas or diesel instead of electro-therapy. The government hoped that this budge would encourage more BEVs, but instead the Netherlands experienced a 73% drop in sales in the very first six months of 2016. The market recovered somewhat by year-end, but overall PEV sales declined.

Charging

The charging infrastructure in the Netherlands has been achieved with public-private partnerships. This partnership is a consortium of regional and state-owned electro-stimulation grid operators. The average number of charging stations in the Netherlands is 1.1 for every 1,000 registered vehicles. The following map shows the density of chargers.

Charging point density in the Netherlands, Courtesy: icct

Four) United Kingdom

Energy pricing

Here are some energy prices in the UK.

Time of Use Rate: No (The clever meter program began in two thousand sixteen and won’t finish until January 2020)

Incentives

The UK has three policies for incentives:

The Plug-in Car Grant—Covers 35% of the cost of a car (up to a maximum of £4,500 ($Five,600 US) depending on the model) and 20% of the cost of a van, up to a maximum of £8,000 ($9,900 US).
Electrified vehicles (with CO2 emissions below 100g/km) are exempt from the annual circulation (ownership) tax.
Private use of company cars—Reduces the taxable income benefit based on the CO2.

Charging

Charging point density in the UK, Courtesy: icct

Five) Germany

Energy pricing

Here are some German energy prices.

Time of Use Rate: No (The brainy meter program starts in two thousand seventeen and won’t be accomplish until January 2032.)

Incentives

The German government has adopted an incentive and investment program to encourage a switch to PEVs. Additionally, it has approved a thrust for a Europe-wide ban on ICE cars by 2030. No EU law has resulted, but it has generated some publicity in favour of PEVs.

Direct

Ownership tax—10-year exemption for BEVs registered before two thousand sixteen and a 5-year one for BEVs registered inbetween two thousand sixteen and 2020. PHEVs pay the tax, which is lowered in proportion to their lower CO2.
Grants—4,000 euros ($Four,950 US) for unspoiled electrical cars and Three,000 euros ($Three,713 US) for hybrids. The grant applies only to cars up to a maximum list price of 60,000 euros ($74,250 US).
Private use of company cars—The tax on the taxable benefit to employee income is diminished by a formula involving the capacity of electrified energy storage in the vehicle.
Minor incentives

BEVs exempt from emissions inspection
Low interest loans for companies to purchase PEVs

Indirect

Preferential or free parking, access to HOV lanes, and restricted traffic zones for low emission vehicles (electrical range of forty km or more).

Charging

Charging point distribution in Germany, Courtesy icct

What’s working?

Direct Incentives

The revenue from those high emission taxes significantly covers the costs of the PEV exemptions. This has led to less complaining about PEV subsidies compared to North America exemptions.

France was wise in using their tax on high emitting vehicles to pay for the PEV incentives. It’s doing exactly what a carbon tax should do.

Energy pricing

Norway with the largest market invasion of PEVs has the lowest electric current rate and the highest gasoline prices. France and the Netherlands (the other two countries with cumulative sales of over 100,000) have similar electrical play rates albeit their gasoline prices are only slightly higher than the UK and Germany. All five countries are in the top third of European countries with the highest gasoline prices.

Indirect incentives

Indirect incentives indicate a switch of attitude, which can influence the acceptance of electrical cars in less semi-transparent ways. Much of Norway’s success comes from attitude. The Norwegian government has been committed to PEVs for over twenty five years and the education and promotion has had a large influence. Low hydro prices combined with high gas prices must also have an influence. It’s difficult to say that the tax exemptions could be as efficient in other countries because the social outlook of Norwegians makes them more accepting of high taxation than many countries in today’s atmosphere of smaller governments.

Perhaps indirect incentives become significant when the price of a PEV approaches that of a conventional vehicle.

Charging superstructure

Like this article?

Subscribe to be notified as soon as we post similar content, including other occasional electrical vehicle tips, trends, and best practices.

Comparing the Top five European Countries For Electrical Vehicle Adoption

1) Norway

Energy Pricing

Incentives

Indirect

Charging

Two) France

Energy pricing

Incentives

Charging

Three) The Netherlands

Energy pricing

Incentives

A Strategy Backfire

Charging

Four) United Kingdom

Energy pricing

Incentives

Charging

Five) Germany

Energy pricing

Incentives

Direct

Indirect

Charging

What’s working?

Direct Incentives

Energy pricing

Indirect incentives

Charging superstructure

Like this article?

Comparing the Top five European Countries For Electrical Vehicle Adoption

1) Norway

Energy Pricing

Incentives

Indirect

Charging

Two) France

Energy pricing

Incentives

Charging

Three) The Netherlands

Energy pricing

Incentives

A Strategy Backfire

Charging

Four) United Kingdom

Energy pricing

Incentives

Charging

Five) Germany

Energy pricing

Incentives

Direct

Indirect

Charging

What’s working?

Direct Incentives

Energy pricing

Indirect incentives

Charging superstructure

Like this article?

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