Driving electrification: A global comparison of fiscal incentive policy for electric vehicles

However, in order to allow for a fair comparison of incentives around the world without having to worry about manufacturers’ model and pricing strategies, the following underlying assumption was made for the comparison: The selected vehicle models are available in all the respective countries and vehicle prices (excluding taxes and subsidies) are always identical to the vehicle base price in Germa. [...] In the case of the Volvo V60, the estimated amount of registration tax for the diesel PHEV version is about 77,000 EUR, compared with about 94,000 EUR for the regular diesel version. [...] The annual saving in the case of the Renault Zoe is estimated to be around 380 EUR, in the case of the V60 about 1,900 EUR. [...] Along with the low VAT tax and the one-time bonus provided for EVs, the incentives reduce the TCO of the Renault Zoe to only slightly above its base price, while the TCO of the Clio is much higher than its base price. [...] The tax break for EVs is therefore no longer sufficient for compensating the higher vehicle purchase price and VAT, and so TCO for company cars is higher for the Zoe BEV while the TCO of the V60 PHEV is only a little lower than for its combustion engine counterpart.