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In the bustling heart of Europe, the Netherlands continues to lead the charge in electric vehicle (EV) adoption. The country, known for its windmills and tulip fields, has become one of the continent's leading EV markets.
January 2025 saw a significant shift in the Dutch EV landscape, with battery-electric vehicle (BEV) registrations increasing by 38.5% year on year. This surge was driven by a host of new models gracing Dutch roads, including the Kia EV3, which made a splashy debut, becoming the best-selling BEV and the most popular new car in the Netherlands for the month.
The Kia EV3, with its impressive 15.5% share of the all-electric market, was closely followed by the Volkswagen ID.3 and the Ford Kuga, both of which saw substantial growth in registrations. The Volkswagen ID.3 finished the month with 523 units, a 5.2 percentage point increase in market share to 6.4%, while the Ford Kuga recorded 460 registrations, a 35.7% increase, and an 8.1% share in the PHEV market.
However, not every model fared as well. The Tesla Model 3, once a dominant force in the Dutch EV market, saw a 5.7% decrease in deliveries, with 432 units registered in January 2025. Meanwhile, the Tesla Model Y experienced a more pronounced drop, with deliveries plummeting by 57.7% to 483 units.
The Dutch government's move to end tax breaks for EVs in 2025 and gradually increase taxes on EVs from 2026 may have contributed to these shifts. The removal of these incentives could potentially slow the pace of new EV purchases in the short term. However, the overall shift toward electrification in the Netherlands and other EU countries remains robust.
The EU’s "fit for 55" package and vehicle CO2 emission targets continue to drive demand for EVs. The Netherlands, along with Nordic countries, has already reached high EV market shares compared to internal combustion engine (ICE) vehicles, suggesting a mature market that may be less sensitive to subsidy removal.
The Dutch government's support for the EV market extends beyond passenger cars. Substantial subsidies for electric trucks, covering 40-60% of the additional costs depending on company size, are aimed at encouraging the commercial sector’s electrification. Additionally, significant government investment in green hydrogen projects could complement EV adoption in the transport sector by supporting alternative fuel development and infrastructure.
Despite the anticipated impact of tax and subsidy changes on the EV market in the Netherlands, the combination of ongoing subsidies for electric trucks, EU emission standards, and broader clean energy initiatives will continue to support the growth of the electric vehicle market in the country beyond 2025.
As the Dutch EV market continues to evolve, it will be interesting to see how the landscape shifts in response to these changes. One thing is certain: the Netherlands remains committed to its role as a leader in the global transition to clean, sustainable transportation.
The escalating popularity of the Kia EV3 and other diverse electric vehicles, such as the Volkswagen ID.3 and Ford Kuga, has significantly reshaped the Dutch electric vehicle market in January 2025. On the other hand, technology-driven cars like the Tesla Model 3 and Y have experienced a decrease in deliveries, showcasing a shift in the Dutch lifestyle preferences towards more affordable, eco-friendly alternatives in the era of growing technology.
