Electric Car: Switzerland to Cut Tax Incentives in 2024

Switzerland is one of the first European countries to decide that electric cars no longer need a fiscal boost to sell themselves.

This marks a significant paradigm shift. A country can have a systematic budget surplus for decades and still say stop to subsidies for electric cars to accelerate its energy transition. Switzerland is thus one of the first countries in Europe to consider that electric cars are now sufficiently popular and embedded in the times so that their sales can continue to rise without fiscal incentives.

Changing mentalities, especially among younger generations, have embraced the idea that shifting to this technology is necessary, particularly on mountain roads where performance and energy regeneration make sense. The Swiss government’s other strategy includes strong penalties for purchasing thermal vehicles (some Swiss may scoff at this), as well as circulation restrictions in cities. This approach is much more respected than in France, where ZFE (Low Emission Zones) and Crit’Air stickers are mainly used for decoration on windshields or city entrances.

With this measure, Switzerland expects to save and boost its coffers by approximately 3 billion Swiss Francs (3.1 billion euros) by 2030. Nothing trivial!

Now, the question is who will be the next European country to follow this logic. Countries that do not produce cars, like Switzerland, are likely the first to succumb.

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