Brussels - 27 July 2023 - Today, Deloitte released its latest Automotive Consumer Tracker on the Belgian car market, which reveals that the Vehicle Purchase Index (VPI) in H1 2023 was 25% lower than in H1 2022.
“Belgian consumers are less intent to buy a new car, mainly due to inflation and concern for their future financial capacity,” explains Aled Walker, Automotive Leader at Deloitte Belgium. “The ongoing crisis is clearly driving consumer decisions. With 44% of consumers still delaying large purchases, and most electric vehicles starting at €50,000, the gap between the have and have nots of electric vehicles will become increasingly apparent.”
The purchase intent of EVs reveals societal tensions
The Deloitte report also highlights socio-economic differences in consumer interest in battery electric vehicles (BEVs). The survey found that lower income groups are less inclined to buy hybrid or battery electric cars and 27% do not know whether their next car will be petrol, diesel, hybrid or fully electric, with affordability of BEVs identified as a key barrier to purchase. Only three in 10 consumers that are 55+ plan to buy an electric car next, compared to four in 10 younger consumers.
In Belgium, consumer interest in BEVs is lower than in the neighbouring countries. In H1 2023, only 10% of Belgian respondents stated that they plan to buy a BEV, compared to 16% in the Netherlands, 13% in France and 15% in Germany. Deloitte's research shows that there is a relatively low tax difference between small BEVs and small ICE (internal combustion engine) vehicles in Belgium compared to peer countries. For example, the Netherlands exempts electric cars from registration tax, while ICE vehicles face a progressive increase in registration tax up to €50K. Additionally, German, French and Dutch consumers may be eligible for premiums when purchasing a (second-hand) BEV under specific conditions.
The cost-price premium is the #1 barrier that stops consumers from making the switch to EVs, even if there are lower maintenance and fuel costs during the lifetime of the vehicle.
The corporate vehicle market is picking up much faster than the consumer market
While new car registrations were up 35.4% in H1 2023 compared to H1 2022, the rise is due to the backlog of orders that is now decreasing, with high levels of stock in 2022 being delivered and registered in 2023. According to Febiac data, the total amount of registrations are primarily driven by a strong corporate market (2/3rd) and to a lesser degree by private consumers (1/3rd). Overall, registrations dropped to a twenty-year low at the end of 2022, and are currently down 14% compared to H1 2019.
There is a growing gap between the corporate and private consumers, since private consumers represent 33% of new car registrations, but only 10% of BEV registrations. In addition, 92% of all new PHEV-registrations were done by companies.
Deloitte in Belgium
Deloitte has more than 5,700 employees and 11 offices in Belgium, making it the country's largest organisation in audit, accounting, legal and tax advice, consulting, financial, and risk advice.
With these services, Deloitte helps the largest national and international companies as well as SMEs, governments and non-profit organisations move forward. Deloitte Belgium is an independent and autonomous organisation affiliated with Deloitte Touche Tohmatsu Limited (DTTL). In FY2024, the organisation achieved turnover of EUR 819.4 million.
Deloitte Belgium BV is the Belgian subsidiary of Deloitte NSE LLP, a firm affiliated with Deloitte Touche Tohmatsu Limited, which consistently aims to provide the highest quality in the professional services and advice. These services are based on a global strategy covering more than 150 countries. To realise this, they rely on the expertise of 460,000 professionals on all continents. For the 2024 financial year, turnover exceeded USD 67.2 billion.
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