Electric vehicles are widely regarded as a cost-effective alternative to gasoline-powered cars, but that trend has officially reversed in the Netherlands.
According to the latest Elektrisch Rijden Monitor by the Dutch motorists’ association ANWB, it’s now more expensive to drive an EV than a combustion-engined car. The report highlights growing concerns over rising operating costs, shrinking subsidies, and steep depreciation rates.
The analysis, based on a four-year, 15,000-kilometer-per-year usage model for a €46,000 EV, revealed that the cost of driving electric now stands at €0.76 per kilometer, while the same for a gasoline-powered car is €0.67 per kilometer — a difference of €0.09 per kilometer.
The calculation factors in expenses like depreciation, insurance, maintenance, charging, tires, and road tax (known locally as motorrijtuigenbelasting, or MRB).
Shifting economies
Ever since their arrival, EVs have been seen and promoted as a cost-saving option for motorists, offsetting the high upfront cost with low operational expenses. But those economics have changed for Dutch drivers.
ANWB Director Marga de Jager attributes the shift to three key factors. The first is the faster-than-expected depreciation of EVs, which lose their value much more quickly than anticipated, especially when compared to gas-powered cars.
Second, changes to the road tax policy are also driving up costs. EVs, currently exempt from road tax, will begin paying 25% of the standard MRB in 2025, increasing to 75% in 2026 and reaching 100% by 2030. Lastly, the withdrawal of purchase subsidies for new EVs in 2024 is expected to further increase the financial burden on buyers.
Losing 50% of value
Depreciation is one of the most significant costs of EV ownership. While EV technology is improving rapidly, early adopters bear the financial brunt. Cars with outdated battery ranges and charging speeds are left behind in the resale market. For instance, a Fiat 500e purchased for €40,000 three years ago is now worth just €17,000 — a loss of more than 50% in value.
Another looming cost for EV owners is the upcoming reinstatement of the MRB (road tax) for EVs. Electric cars are exempt, but from January 2025, EV drivers will pay 25% of the standard rate, rising to 75% in 2026 and reaching 100% in 2030.
This change is particularly impactful because MRB is weight-related, and EVs, due to their battery packs, are heavier than gasoline-powered vehicles. The Walloon region plans to install a similar taxation in Belgium by July 2025.
Youth is interested
According to calculations by BOVAG, the trade association for car dealerships in the Netherlands, the quarterly road tax on an electric Volkswagen ID.3 will be €60 higher than for a comparable Volkswagen Golf on gasoline. As the weight of EVs typically exceeds that of their internal combustion counterparts, the cost difference will only grow.
The shift in road tax policy is seen as a step backward for EV adoption. The ANWB had lobbied for a lower road tax rate to account for the heavier weight. However, the government rejected this proposal, prioritizing revenue generation instead.
Despite the fiscal turmoil, EV sales in the Netherlands are still increasing, but the growth rate has slowed significantly (+3% year-over-year).
Will the Netherlands lose its position at the forefront of electric mobility? The ANWB warns that further adoption could stall despite the current favorable context. While younger people may not have the financial means to purchase an EV today, the report finds that Dutch youth are interested in awaiting more affordable models.
With Europe’s most robust charging network—one public charging point for every three EVs—the Netherlands is well-positioned to support EV growth. But 2025 could become a turning point.
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