Tesla Model S/Model X sales surge in Netherlands before impending end of EV incentive

Tesla Model S/Model X sales surge in Netherlands before impending end of EV incentive

According to reports, the sales of Tesla’s Model S and Model X electric cars has witnessed an increase in the Netherlands, ahead of the impending end of an electric-vehicle (EV) incentive in the country.

The recent surge in Tesla’s sales in the Netherlands are apparently linked to the significant tax break on the Benefit-in-kind (or BIK) ending for vehicles priced at more than €50,000, like the Model S and Model X.

The BIK tax break in the Netherlands reportedly amounted to maximum of €19,000 for corporate EV owners over five years. The government’s EV incentive brought the tax down to 4%, but it will increase to 22% for any amount more than €50,000, with effect from 2019.

The generous EV incentive offered by the Netherland’s government was probably a key reason for an increasingly popularity of EVs in the country. For Tesla in particular, the Netherlands has long been a crucial market because it is one of the automaker’s biggest markets for sales per capita.

Going by the registration data, more than 3,000 units of Tesla’s Model S and Model X electric cars have been delivered in the Netherlands in 2018, marking a two-fold increase over the 2017 figures. The growth of Model S sales has been especially notable, with the electric sedan accounting for nearly two-third of the automaker’s 2018 sales in the country.