THe Netherlands
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Current Market Trends
The market for electric and hybrid cars is experiencing a rapid increase in popularity. According to the Dutch Census Bureau, there were 402,000 electric and hybrid vehicles in the Netherlands at the start of 2020. This is an increase of 28 percent compared to the year before. As a result, the number of charging points grew by more than 93 percent from 32,875 in 2017 to more than 63,586 public and 169,000 private charging points in 2020. One out of 20 passenger vehicles is either electric or hybrid.
One of the newest developments is autonomous driving. According to research conducted by KPMG, the Netherlands is the most suitable country in Europe for autonomous driving. Cars with completely autonomous driving systems are currently being tested on the Dutch roads. The Netherlands is one of the best testing grounds for these vehicles because it has a large charging network for electrical cars and the roads are well maintained.
Other driver assistance growth areas include: remote control parking, forward/reverse collision warning with autonomous brakes, lane departure warning, and blind-spot monitoring. Additional technologies in high demand include 360 degree cameras, keyless-go-systems, and automatic transmissions.
According to Roland Berger (2017), four megatrends have emerged in recent years that are poised to disrupt and significantly reshape the automotive industry: (1) Mobility (as-a-Service); (2) Automated driving; (3) Digitized culture; and (4) Electric vehicles. The disruptive potential of new technology, business models and market actors are putting significant pressure on the traditional auto industry to
adapt and innovate. This is not only limited to the integration of new vehicle technology or digital services, but also requires innovation with regards to existing and new business models – e.g. shared mobility.
Current Market Demand
Electric mobility remains the largest growth market with opportunities in charging points and electric engines. Even though the fiscal stimulus offered by the Dutch government is reduced annually, the demand for electric cars continues to increase with a rise of 20.3 percent in market share from 2019 to 2020. Electric cars also benefit from a lower additional tax rate compared to cars with a combustion engine. The lower rate will be raised each year until 2026 when the additional tax rate is the same for all cars. Other eco friendly cars, including hybrids, no longer benefit from a lower additional tax.