Europe: EV purchase incentives in selected countries by type of incentive 2023
In the beginning of 2023, there were nearly 14,400 euros available in electric vehicle purchase incentives in the Netherlands for consumers buying an electric compact sport-utility vehicle. This was by far the largest incentive amount recorded across the six countries analyzed, with France coming in second with close to 7,800 euros in total financial incentive. France was the only country among the six surveyed to not offer ownership tax reduction, instead offering the largest purchase grant.
European electric vehicle sales increased in 2022, up by some 15 percent year-over-year. While the European market did not record a growth as quick as the Chinese market (up 82 percent year-over-year across the same period), its EV market has struggled to maintain a steady growth. Quarterly electric vehicle sales in Europe shot up in 2020, as consumers were looking for more sustainable commuting alternatives amid the COVID-19 pandemic, and have been oscillating through 2022. The European Union's commitment to ban the sale of internal combustion engine vehicles in 2035, excluding e-fuels, could partly help the EV market expand.
Germany, the United Kingdom, and France were the European countries with the largest electric vehicle fleet in the region as of 2021. However, Norway recorded the highest EV sales share in Europe, with some 79.33 percent of its 2022 passenger car sales being battery-electric and 9.25 percent being plug-in hybrid electric vehicles. This success was partly due to Norway's extensive incentive program, which the country planned to cut back on in 2023 to promote active mobility. On average, Norwegians were eligible for around 19,000 U.S. dollars of financial benefits at the purchase of a medium electric vehicle in 2022.
The growing European EV market
European electric vehicle sales increased in 2022, up by some 15 percent year-over-year. While the European market did not record a growth as quick as the Chinese market (up 82 percent year-over-year across the same period), its EV market has struggled to maintain a steady growth. Quarterly electric vehicle sales in Europe shot up in 2020, as consumers were looking for more sustainable commuting alternatives amid the COVID-19 pandemic, and have been oscillating through 2022. The European Union's commitment to ban the sale of internal combustion engine vehicles in 2035, excluding e-fuels, could partly help the EV market expand.
Diverse national markets
Germany, the United Kingdom, and France were the European countries with the largest electric vehicle fleet in the region as of 2021. However, Norway recorded the highest EV sales share in Europe, with some 79.33 percent of its 2022 passenger car sales being battery-electric and 9.25 percent being plug-in hybrid electric vehicles. This success was partly due to Norway's extensive incentive program, which the country planned to cut back on in 2023 to promote active mobility. On average, Norwegians were eligible for around 19,000 U.S. dollars of financial benefits at the purchase of a medium electric vehicle in 2022.
