In 2019 the EU decided that the car manufacturers need to cut down on the emissions of personal cars. The 2021 target will be 95g CO2/km and will be phased in. In this transition period, 5% of most polluting models will be excluded in 2020. Car manufacturers will have to pay a fine of €95 for every gram over the target, multiplied by the total number of cars they sell. This regulation has convinced many car manufacturers to start producing their own electric car(s). And thus making EVs more mainstream.

This is exciting news for the EV-world. These new targets are forcing the automotive industry to develop cleaner cars. At the same time, 2020 is the year that EVs are becoming more affordable, quicker to charge and the average range is increasing. From small urban cars to full-on sports models and a surprising number of electric SUVs are entering the EV-world.

Electrification is the trend

A side effect of this trend is that it demands lots of innovations. Users are asking for better performance, innovative features and a whole bunch of new features. We can surely say that electric driving is evolving from being an early adopter toy to a mainstream baby.
This trend also encourages car manufacturers to become more sustainable and build numerous models for the masses. From working with vegan leather (Volkswagen) to using second-hand and fully re-usable interiors (BMW), the sustainable sky doesn’t seem to have any limits. The clear reduction in battery costs is one of the main drivers of the trend, reducing the price gap between ICE cars and EVs.

A summary of some exciting changes we can look forward to in 2020:
The average range is going up, especially in cheaper models.
More countries are introducing tax incentives for EVs.
EVs are becoming more affordable.
Manufacturers are introducing optional 3 Phase charging for specific markets. This is beneficial for public AC charging (Example: Ford Mustang, Peugeot e-208)
Fast charging power is increasing. Example: Skoda Vision 125 kW, BMW iX3 150 kW, Audi e-tron GT at 270 kW.
Battery efficiency is increasing (5km/1kWh going up to an average of 8km/kWh).
Battery prices have dropped by almost 80%.
Standardization of connectors: A few years back there were many different fast charging connectors like AC, CCS and CHAdeMO. Currently almost all car manufacturers are switching to CCS.
Everyone wants to be part of the trend and even some non-car manufacturers are showing off their electric prototypes. Sony (yes, you’ve read that correctly) showed an EV prototype at the Consumer Electric Show (CES) in Las Vegas. The Sony car probably won’t go into production just yet, but it emphasizes the buzzing trend that follows electric vehicles around. Even Mercedes Benz is showing off their cooperation with AVATAR by making an electric concept car that seems like it has just arrived from the planet Pandora.

Changes in regulations

The Netherlands
In The Netherlands, business drivers pay an additional tax to use their company car for private use (Benefit-in-kind). The additional tax was only at 4% for EV drivers. This has increased from 4% to 8% but is still well below the regular 22% for an ICE car (only applicable to cars up to the cost of € 45K).
Example: If you buy an EV for 60k, 8% BIK will be applied to the amount until 45k and 22% to the remaining 15k).
Businesses that purchase electric cars or vans for their employees can make use of a new law that treats this as a sustainable investment. This can lead to serious tax benefits.
For more information on MIA and VAMIL laws Click here: RVO.

The UK
Personal cars

The UK continues the Plug-In Car Grant provides 35% of the purchase price for eligible low emission cars. There are a few rules concerning this case:

• The vehicle must have an electric range of at least 70 miles.
• If plug-in hybrid, the vehicle must also have combined CO2 emissions of 50g/km or less.
• This means all major full battery electric vehicles (BEVs) qualify, but few plug-in hybrid electric vehicles (PHEVs) are eligible.

Please find a list of eligible cars here Low-emission vehicles eligible for a plug-in grant or check for more information: Plug-In Car Grant: A Complete Guide.

Company cars

Concerning company cars the benefit in kind tax payable by drivers through their income tax will reduce from April 2020 to zero. Fully electric cars will pay no company car tax next year From 6 April 2020 until 5 April 2021, full battery electric vehicles (BEVs) will pay no Benefit in Kind rate.

For more information:
Tax Benefits – GUL
Company Car Tax: Does it now pay to go electric with your fleet?

Germany
At the end of 2019, it has been decided that cash bonuses for new electric vehicles go up to almost 50%. Half of this bonus is covered by the car manufacturing industry.

More about the bonus: https://bloom.bg/2vdXI9F

As soon as approved by the EU, battery electric vehicles up to a netlist price of 40,000 euros will receive a subsidy of 6,000 euros. This increases the subsidy by 50%. For plug-in hybrids, the subsidy in the same price segment to be increased from 3,000 euros to 4,500 euros.

For a new EV with a netlist price of 40,000 euros or more, a battery-electric vehicle receives a bonus of 5,000 euros, and a Plug-in hybrid receives 4,000 euros. At a new price of 65,000 euros, the promotion ends. The funding period has been extended from the end of 2020 to 2025. The following vehicles are eligible:

• Pure battery electric vehicles
• Externally chargeable hybrid electric vehicles (plug-in hybrids)
• Fuel cell vehicles
• Vehicles with no local CO2 emissions
• Vehicles with a maximum of 50 g CO2/km

The top 3 cars we are looking forward to in 2020 are the following:

1. Volkswagen ID.3
For 2020 all eyes are on the Volkswagen ID.3. Like going to some new club, the model even has its waiting list. With a range of around 300 to 475 km (Long-range model) and priced at € 30.000 it is the car that brings affordability, comfort and longer range mainstream.

2. Ford Mustang Mach 3
It’s been said that this model could be the first real competitor to Tesla’s model Y. With great range (+ 500 km) and released under the Mustang brand it’s’ taking electric SUVs to the next level. Estimated price will start around €50.000.

3. SEAT Mii Electric
This SEAT is the one of the more affordable electric cars on the 2020 market with a range of 200 km and priced under €25.000. Proving that electric driving can be a responsible yet budget-friendly choice.

#KeepDrivingForward