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Dutch automotive industry expects lower new car sales

Dutch automotive industry expects lower new car sales

The Dutch automotive sector expects a decline in new passenger car sales by 2027 due to shifting tax regulations and economic headwinds. While passenger car demand is cooling, sales of light commercial vehicles are projected to rise following a significant dip in previous years.

The Dutch automotive industry projects a decline in new passenger car sales, expecting 384,000 units by the end of this year, with a further decrease to 371,000 in 2027. Sector representatives BOVAG and RAI Vereniging attribute this cooling market to updated tax regulations, including changes to the surcharge for electric lease cars and a new 12 percent tax on fuel-powered employer-provided vehicles. Additionally, broader economic factors are impacting the industry, as experts forecast modest economic growth of 1.2 percent, diminished purchasing power, and potential price instability at the pump due to geopolitical tensions in Iran.

Conversely, the market for light commercial vehicles is expected to show growth following a previous decline caused by the removal of tax incentives. Sales for these vans are anticipated to rise from 22,000 last year to 31,000 this year, with a further increase to 33,000 projected by 2027. Despite the optimism surrounding utility vehicle sales, the overall automotive sector remains cautious due to the combination of policy adjustments and general economic uncertainty.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

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