Europe: the Netherlands to lose plug-in hybrid prowess image

The automakers have been feeding off the Dutch-plug-in hybrid boom recently, but the government will close the gap starting with 2016 as the tax deal for company car drivers will be reduced.

Across the world, sales of green vehicles – such as hybrids, plug-in hybrids and electrics – have been going down or rising tremendously slow, because of pricing, recharging network concerns and beginning with the second half of last year, due to the massive plunge in gasoline prices in some regions. There are strongholds though, such as Norway for electric autos and the Netherlands for the plug-in hybrids – both attributable to subsidies and tax breaks coming from the governments. The Dutch tax break on company cars has actually turned the country into the largest market for plug-in hybrids across Europe – 12,237 autos with the technology were delivered in 2014, according to figures coming from market research firm JATO Dynamics. Automakers have been hard at work delivering new models with plug-in hybrid capability to tap the market demand but now fret the government tax inventive reduction will soon curb sales of such models.

Thanks to the Dutch government incentives, company car drivers have to pay less of the car’s value when the benefits are calculated into the driver’s own tax report. The average plug-in hybrid yields a tax of just 7 percent if its CO2 emissions are below 50 grams per kilometer and 14 percent if they are below 82 g/km – while the average internal combustion engine car will have a tax of 25 percent.

Via Automotive News Europe