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Date: February 12, 2025
Inés Platini
By Inés Platini
Netherlands

Dutch Government rejects 3,705 EV grants: What are the reasons?

A few weeks ago, Mobility Portal Europe reported that the fund allocated for subsidies for new EVs in the Netherlands had been exhausted and would not be reintroduced this year. In this context, what was the outcome of the latest eMobility support provided by the Dutch government?
electric vehicle ev

On 21 November 2024, the subsidy fund for new electric vehicles (EVs) in the Netherlands (SEPP), with an allocated budget of 58 million euros, was fully depleted.

Within this framework, the Netherlands Enterprise Agency (RVO) discloses the programme’s outcomes to Mobility Portal Europe.

A total of 3,705 applications were declined in 2024, bringing the cumulative number of rejected subsidies since 2020 to 8,356.

Between 2020 and 2024, 136,503 individuals applied for financial assistance to purchase EVs.

Of these, 117,082 were approved, reflecting a rejection rate of 6.1%.

The figures indicate a steady rise in the number of denied requests, with a sharp increase recorded in 2024.

In contrast to previous years, when the number of refusals ranged between 410 and 1,798, the most recent period saw 3,705 applications turned down—the highest figure recorded to date.

The year 2024 registered the largest number of requests, with 50,414 applications submitted, of which only 40,184 were granted.

This implies that 7.3% of applicants failed to meet the stipulated criteria.

Information on applications.

What led the Dutch government to reject these applications?

The primary reason was non-compliance with the established requirements.

According to the RVO, the most common grounds for rejection included applicants having previously received a grant, the vehicle being registered at the same address prior to the application, or the purchase price exceeding 45,000 euros.

Additional disqualifying factors included a driving range below 120 km under the WLTP standard or the purchase/lease agreement being signed in a year preceding the application.

Furthermore, applications were declined if the vehicle was registered for business rather than private use or, in the case of second-hand cars, if the purchase was not made from an RDW-registered company.

Reasons for which some applications were rejected.

The impact on the market share of EVs

Despite the termination of subsidies, the transition towards eMobility in the Netherlands continues to progress.

According to the Dutch Organisation for Electric Transport (DOET), the EV market share lost momentum at the end of 2023, with growth stagnating in the first half of 2024.

Nevertheless, the increase from 31% to nearly 35% was entirely driven by the final two months of the year, with market shares of 39% and 57%, respectively.

“This was linked, among other factors, to the remaining subsidy fund (SEPP), which was available for the last time,” the association highlights.

By 2025, electric vehicles are expected to account for 50% of corporate fleets, while the overall market share is projected to approach 40%.

The corporate sector has played a pivotal role in this shift, representing over 70% of EV sales in the country.

However, the end of financial incentives may slow growth in the private segment.

Michel Bayings – Emobility Consulting France/Netherlands

“Whenever incentives are withdrawn, we observe a surge in sales before the change, followed by a downturn in the ensuing months,” explains Michel Bayings, a consultant at Emobility Consulting France/Netherlands, to Mobility Portal Europe.

In parallel, the Dutch Ministry of Infrastructure and Water Management confirmed that no further incentives for EV purchases will be available in 2025.

According to the RVO, the subsidy programme has fulfilled its original objective: “Encouraging more car owners to transition to EVs.”

Sales figures from December 2024 support this assertion: 37,087 EVs were registered, marking a 40.3% increase compared to the same period the previous year.

This pattern can be attributed to an anticipatory effect, whereby numerous consumers opted to bring forward their purchase of zero-emission vehicles before subsidies ended.

Changes in Dutch mobility policy

Another shift in Dutch transport policy is the introduction of the motor vehicle tax (MRB) for EVs.

As of this year, a reduced rate of 25% of the standard tax applies.

This exemption will be entirely phased out on 1 January 2026.

Bayings warns that this revised tax framework could undermine the competitiveness of electric cars relative to alternative options.

To mitigate any adverse impact on market expansion, the Dutch government has decided to implement a 25% discount on the MRB, applicable to both national and provincial tax components, until 2029.

Nonetheless, this policy is set to be reviewed this year to determine whether it remains adequate in sustaining the current adoption rate.

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