More EU governments offer support for EVs

International fleets are benefiting from wider support for the electrification of their vehicles as more Governments across the European Union ramp up their efforts to encourage the transition to electric vehicles, according to a new study.

The annual survey by ACEA, the vehicle manufacturers’ association, has found that 21 EU member states now offer incentives to purchase electric vehicles, an increase of four countries in a year – Belgium, Cyprus, Czech Republic and Poland.

Even among the six countries (Bulgaria, Denmark, Estonia, Latvia, Malta and Slovakia) that do not offer a purchase incentive, there are still tax reductions or exemptions for electric vehicles.

Estonia is the only country not to offer any support, either a purchase subsidy or tax break, for electric vehicles.

The generosity of member states to encourage battery electric vehicles varies widely: Cyprus is the most generous, offering a purchase incentive of up to €19,000 to offset the higher cost of electric cars.

Among major markets, Germany leads the way with grants of €9,000 for battery electric and fuel cell electric cars that cost up to €40,000, and €6,750 for plug-in hybrid models. This bonus declines to €7,500 for BEVs and FCEVs costing more than €40,000, and €5,625 for PHEVS in the same price band. The continent’s largest new car market is also offering an exemption from annual road tax for BEVs and PHEVs until the end of the decade.

Company car drivers are also benefiting from significant benefit in kind tax breaks across the EU, with sizeable discounts or even complete exemption.

EV sales

During the first half of 2022 sales of battery electric vehicles rose by 28.4% compared to the first half of 2021, to account for 457,608 units, in a new car market that was 14% down year-on-year, due to supply shortages.

BEVs were the only bright spot in a market that saw sales of PHEVs slip by 9.6% to 403,217 units, petrol drop 22.2% to 1,748,561 units and diesels slump 30.6% to 803,013 registrations.


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