Government Incentives Encourage the Adoption of Electric Vehicles

Government Incentives Encourage Adoption of Electric Vehicles

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Overview

• The adoption of electric vehicles has been quicker in some countries than others, with countries such as Japan and the USA paving the way for others

• Whilst the global adaption of electric vehicles can, in part, be attributed to consumers becoming more environmentally aware, government incentives also play a huge role in the growing demand for electric vehicles.

• Incentives vary from country to country, with common incentives including tax exemptions and rebates and reduced registration fees.


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Norway

1. All electric vehicles are exempt from VAT and purchase tax. Purchase tax in Norway is extremely high, often over 25% of the total cost of the vehicle. This incentive makes electric vehicles more affordable, and more competitive than conventional vehicles.

2. Electric vehicles are exempt from road tolls, tunnel and ferry charges.

3. Electric vehicles can avail of free parking and free charging.

4. Drivers of electric vehicles have the freedom to use bus lanes.


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The Netherlands

1. All private and corporate electric vehicle owners pay a reduced vehicle registration fee and are exempt from road taxes.

2. A subsidy is in place on the purchase of all electric taxis and delivery vans.

3. Reserved parking spaces are available for owners of electric vehicles in Amsterdam, and Rotterdam offers electric vehicle owners one year of free parking.

4. Subsidies are available to install chargers at home.

5. A scrappage program is available to replace old non-electric vehicles with electric vehicles.


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USA

1. Electric vehicle buyers can avail of a tax credit of between $2,500 and $7,500 depending on the size of the battery.

2. Between 2010 and 2013 business owners could avail of a tax credit for the cost and installation of a charging station.


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California

1. Electric vehicle drivers are offered a rebate for the purchase or lease of qualified vehicles.

2. A subsidy is available for at home charging stations.

3. Electric vehicles that meet specific emission standards are permitted to use the high-occupancy vehicle lanes.

4. Free designated parking is available in some areas for those who own or lease electric vehicles.


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China

1. Electric vehicle owners are exempt from consumption tax and purchasing tax and pay a reduced vehicle registration fee.

2. In 2010, the government introduced a scheme called “Ten Cities, Thousand Vehicles” which offered a subsidy on the first 10,000 electric vehicles sold in each city.

3. Electric vehicle owners receive preferential traffic treatment. They are exempt from the rules which see restricted vehicles with odd and even license plates from driving every second day.


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Japan

1. There is a correlation between government incentives and the adoption of electric vehicles around the world.

2. Governments are currently reviewing incentives due to high uptake.

3. Electric vehicles will still be strategically placed as an affordable, environmentally friendly competitor to the non-electric vehicle


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The Future of Government Incentives and Electric Vehicles

• There is a correlation between government incentives and the adoption of electric vehicles around the world.

• Governments are currently reviewing incentives due to high uptake.

• Electric vehicles will still be strategically placed as an affordable, environmentally friendly competitor to the non-electric vehicle


Technology

Government Incentives Encourage the Adoption of Electric Vehicles