http://insideevs.com/denmark-electric-c ... es-vanish/Denmark Plug-In Vehicles Sales Tank As Subsidies Vanish
Denmark, once one of the fastest growing plug-in electric car markets in the world in 2015, has learned the hard way that its decision to re-phase in an import tax too quickly, has collapsed the country’s EV segment, and now looks to at least temporarily rectify the situation.
In 2015 sales of plug-in cars amounted 5,298 units, including 2,738 Tesla Model S. However in the subsequent year, just 1,438 were moved with Tesla taking the largest hit. The US EV-maker plunged to just 176 sales in 2016 (98-Model X, 78-Model S)
Sales in the first quarter of this year (2017) decreased by 60.5%, while the average inside the European Union increased by 30%, including a 80% gain in Sweden (“thanks to a wide range of subsidies, including a five-year tax break and a 40,000 kronor ($4,600) purchase premium”).
The cause of all those changes? The import tax of 180%, from which plug-ins were originally exempted.
In 2016 government launched process of phasing-out the exemptions (planned for 2016-2020), which resulted in December of 2015 surging through the proverbial sales roof…and then demand shriveled up thereafter (see chart below). . . .
“But on April 18, having taken note of the drop in sales, the government decided to change the rules. . . .
The new rules mean the transition to a post-subsidy era has been postponed until at least 5,000 new electric cars are sold over the 2016-2018 period. Tax breaks will in any case be progressively eliminated as of 2019, regardless of sales numbers. The plan envisages a 40 percent registration tax minus a 10,000 kroner ($1,500) deduction in 2019, with the tax rising to 65 percent in 2021, 90 percent in 2021 and 100 percent in 2022.”
In other news, also via IEVS:
http://insideevs.com/bev-sales-surpass-phevs-in-europe/Pure Electric Vehicle (BEV) Sales Surpass PHEVs In Europe For First Time Since Late 2015
Europe is showing more interest again in all-electric vehicles over plug-in hybrids, as after several quarters of PHEV-love the pendulum has swung back to BEVs for the first time since the Fall of 2015.
The reasons for that are simple. There are now more attractive all-electric models (or at least new versions of first generation cars with longer ranges). The Renault ZOE Z.E. 40 (41 kWh) is now the best seller in Europe, supported by the longer-range BMW i3 and relative newcomer – the Tesla Model X.
On the other side, plug-in hybrids this year are struggling in the Netherlands after a favorable tax incentive program ended.
Without Netherlands (previously the largest PHEV market in Europe), and less incentives also in the UK, plug-in hybrids have lost some momentum. . . .