Monthly Intelligence Reports on Market Trends
In the rapidly evolving world of electric vehicles (EVs), several European countries are leading the charge towards a greener future. This article explores the EV market trends in Germany and Belgium, two nations making significant strides in the adoption of electric vehicles.
In Germany, electric vehicles (BEVs) account for approximately half of the total EV market. The German government, through the Federal Office for Economic Affairs and Export Control (BAFA), provides subsidies of up to €9,000 for BEVs, with €6,000 coming from the government and €3,000 from the manufacturer. These generous subsidies have played a crucial role in boosting private EV uptake and lowering the price for leasing deals, often covering the cost of deposits.
Plug-in car sales in Germany are expected to be brought forward into 2022, and the government has announced plans to reduce subsidies in 2023. Despite this, the country's commitment to EVs remains strong, with November 2022 marking a significant milestone as Germany registered more than 100,000 combined BEV/PHEV units for the first time.
Germany's dominance in the EV market is evident, accounting for nearly 40% of the region's total plug-in new car registrations. However, neighbouring countries like Denmark have also benefited from Germany's EV market, with novel business models emerging where ex-lease BEV models are resold as young-used vehicles, avoiding hefty purchase taxes.
Moving to Belgium, around 60% of new cars registered are accounted for by the company car market, according to Febiac. The Belgian government is set to phase-in favourable company car tax savings for BEVs from 2023, potentially boosting BEV uptake. This shift could be complemented by the London ultra-low emission zone (ULEZ) expansion in 2023, which is likely to lead to an increased uptake in BEVs, not just in the UK but potentially in neighbouring countries as well.
In the UK, EV purchase subsidies were entirely removed in June 2021. However, a change in the London ULEZ expansion could boost UK volumes, encouraging a shift towards EVs. Despite this, the UK's EV market is still developing, with Sweden providing an example of a nation that entirely removed EV purchase subsidies in November 2021.
In conclusion, Germany and Belgium are leading the way in the adoption of electric vehicles across Europe. With subsidies, favourable tax policies, and innovative business models, these countries are making it easier for consumers to transition to electric vehicles. As more cities adopt ultra-low emission zones and governments continue to incentivise EV adoption, we can expect to see a continued growth in the EV market across Europe.
