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Automotive Industry
The Dutch government is planning a new subsidy program for low- and middle-income buyers of used electric vehicles: If they scrap an old internal combustion engine car in return, they will receive a scrappage bonus. This is expected to amount to €3,500.
The new scrappage scheme for old vehicles is set to form part of a larger package worth around one billion euros. The Dutch government aims to use this funding to mitigate the impacts of the Middle East crisis, including rising energy prices. Of this sum, 52 million euros will be allocated to buyers of used electric cars who scrap their old internal combustion engine vehicles in exchange.
According to a report by the Dutch specialist portal Tweakers, the scrappage premium per vehicle is expected to be around 3,500 euros, though this has not yet been officially confirmed. The Dutch government has so far outlined two broad criteria for the scheme: vehicles eligible for scrappage must belong to emission classes Euro 1 to 4, and the subsidy will target electric car buyers with low and middle incomes. However, the exact income thresholds remain unspecified.
Originally planned for 2027, the measure is now set to be brought forward to the fourth quarter of 2026 by reallocating funds from 2029. Specifically, just two million euros will initially be made available for the scrappage scheme in 2026, followed by 30 million euros in 2027 and a further 20 million euros in 2028.
The Netherlands previously ran an incentive programme for electric cars between 2020 and 2024, covering both new and used vehicles. At that time, however, the funding was not linked to scrapping a combustion engine vehicle, and there were no income limits. The programme made the Netherlands one of the leading markets for electric mobility.