The impact of the electromobility trend on the Swiss car market
The move toward electromobility is gaining momentum. In the first half of 2022, almost every 6th newly registered car was a fully electric model. In the previous year, only one in 10 vehicles was a purely electrically powered vehicle in the same period.
This trend is leading to fundamental changes on the Swiss car market. How will this affect the financing of transportation infrastructure and what role will the planned phase-out of combustion engine vehicles in the EU from 2035 play in Switzerland? This article should answer these questions.
Financing of transportation infrastructure
When filling up with gasoline or diesel at Swiss gas stations, mineral oil tax is charged with every liter of fuel. This currently amounts to 76.82 centimes for gasoline and 79.57 centimes for diesel. In total, this could generate revenues of 2.69 billion Swiss francs in 2021. This corresponded to 6% of federal revenues.[1] The revenues from the mineral oil tax are used in particular to finance road infrastructure and agglomeration transport projects.[2]
As the number of electric vehicles increases, the contribution from the mineral oil tax will inevitably drop. In the long term, therefore, this revenue may no longer be sufficient to cover financial requirements. The Federal Council is therefore planning to introduce a replacement levy for vehicles with alternative drives . This will consist of a fixed amount per kilometer driven and per vehicle category. This makes the levy similar to the current system for gasoline and diesel vehicles, although vehicles with internal combustion engines will not be affected by the levy and will therefore not be subject to a heavier burden. The Federal Council assumes that the replacement levy will come into force by 2030.
End of combustion engines
The EU Council of Ministers will follow the EU Parliament proposal; hence, the registration of new vehicles with combustion engines will be banned throughout the EU from 2035. In other words only vehicles that do not emit climate-damaging greenhouse gases may be registered in the EU following this time. But how will this decision affect Switzerland? It is still unclear whether this ban will be adopted, but it is clear that it will be unattractive for car manufacturers to produce vehicles with internal combustion engines only for the Swiss market if Switzerland does not follow the EU decision. Accordingly, this ban will also cause an upheaval on the Swiss car market and only alternatively powered cars will be offered. Gasoline or diesel vehicles that were registered before 2035 can, however, continue to be on the road. The ban does not apply to them.
If you are interested in integrating alternative drive systems into your fleet, we will be happy to provide you comprehensive information on the subject and support you in converting to electromobility – based on your needs. Contact us at sales.ch@aldautomotive.com.