26 jan 23

Less carrot, more stick

As electrification takes hold, many countries are starting to wind down their incentives for EVs and charging installations. France, which has increased its purchase incentives, is the exception that proves the rule.

However, that picture only applies to the most mature EV markets, mainly in northern and western Europe. There are several markets, such as Poland in the east, and Italy in the south, where government incentives have yet to produce a shift towards EVs that is as successful as in other countries.

The problem is not so much the lack of carrots, as the lack of sticks. Poland, Italy and other countries that are lagging behind have a fairly flat car taxation system, which makes it difficult for governments to create a price differential between EVs and ICEs, other than by issuing massive incentives.

It is likely that these countries, in order to catch up, will start penalising ICEs harder than they currently do. Which adds to the central message for fleets in this particular time: switch to EVs now, while there are still carrots!

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This article is part of Fleet Europe E-Book on EV Incentives in 2023. Discover it for free in our knowledge center!