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Incentives for buying electric vehicles

April 2010 - National and regional governments of 16 EU member states have introduced incentives for buying electric vehicles. They mainly consist in tax reductions and exemptions, as well as in bonus payments for the buyers of electric vehicles. This is shown in a new survey by ACEA among national associations of motor vehicle manufacturers or importers.*

The European car industry welcomes the increasing trend towards taking into account CO2- and other emissions in car taxation. Fiscal measures are an important tool in shaping consumer demand towards fuel-efficient cars, notably when it comes to electric vehicles and other breakthrough technologies.

The environmental results of such tax incentives may, however, be negatively influenced by the widely varying systems in each country. The European car industry urges EU governments to show more resolve in harmonising car taxation schemes.

The car industry advocates a linear system, in which tax levels are directly proportionate to the car’s CO2 emissions and every gramme of CO2 is taxed the same. Car tax schemes should neither include nor exclude specific technologies and be budget neutral in end-effect.


*additional measures at the local level are not taken into account


last updated 30/03/2011

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