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Netherlands: How are government policies and the auto industry introducing EVs?

The auto industry has made strides in introducing EVs in the market. The first generation of green vehicles, such as the Nissan Leaf, was representative of the potential of automakers in offering green alternatives. Over the years, other car manufacturers and new entrants, such as Tesla, Mitsubishi, and others, have heavily invested in EVs.

However, car manufacturers have faced several barriers in the past.

The challenges faced by Electric Vehicle Manufacturers

Several factors have made it difficult for the average consumer to invest in EVs. Limitations of policy and infrastructure, such as the availability of charging stations, make EVs an impractical alternative. Over a decade ago, EVs were a luxury because of their high prices.

Also, the rapid advancements in EV technology make it difficult for people to keep up with the updates and change the car model regularly.

How is the auto industry in the Netherlands making changes?

Countries in the EU, such as Norway and the Netherlands, have shown tremendous improvements in the sales of Electric Vehicles (EVs). A recent report by Statista.com says that there are about 218,000 EVs in the Netherlands. There are several reasons to account for this.

Government policies

The government policies in the Netherlands have made it easier to adapt to EVs. Also, strict measures by the government will ensure that the consumers shift to EVs quickly. According to an article by The Guardian, Amsterdam will ban petrol and diesel cars by the year 2030.

In addition to this, tax reductions for fully electric vehicles have made it possible for people to buy EVs. For fully electric vehicles, there are tax discounts of up to 75%. Moreover, the government has increased the number of charging points. There are more than 52,000 public EV charging stations. Also, municipalities can request for free installation of public charging stations.

Such incentives have encouraged the Dutch population to invest in EVs and reduce the carbon footprint from ICE vehicles.

The role of car manufacturers

The focus of car manufacturers in the Netherlands has been to improve the infrastructure. It will likely increase the number of EVs on the road. Due to government policies, charging infrastructure, services, and maintenance for EVs is on the rise.

Car manufacturers have heavily invested in bringing down the cost of an EV. For example, currently, the price of the battery of an EV is low. Tesla’s battery has the lowest price among its competitors.

Many startups are investing in EV manufacturing and services relating to it. Companies, such as Lightyear, are focused on developing an electric car powered by solar energy. Other startups are focusing on developing charging stations.

Tesla’s EVs are popular in the Netherlands. According to Statista, there were 8,600 Tesla EVs sold in 2018, while in 2019, the number had risen to 30,943.

Third-party companies

Moreover, the car rental Amsterdam is also shifting to EVs. It could have a positive impact on reducing the carbon footprint since many people rent cars instead of buying them. However, it may take time to phase out ICE cars in this industry.

Vattenfall is an energy company in Europe that provides solar and wind energy for powering charging stations for EVs. The smart charging strategy hopes to provide electrical energy to charging stations on a large scale. They try to bridge the gap between supply and demand for electricity.

Conclusion

To reduce the global carbon footprint, governments need to play an active role in making it easier for consumers to purchase and run EVs on the road. For this, car manufacturers need to work hand-in-hand with governments to come up with policies, regulations, and strategies to ease the use and adoption of EVs on a large scale.