Okay, let’s break down the JETRO report “HEV Exceeds 30%, BEV Decelerates Due to Abolition of Tax Exemption (Switzerland, Liechtenstein)” (published June 8, 2025) and create an easy-to-understand article.
Headline: Hybrid Cars Surge in Popularity in Switzerland and Liechtenstein as Tax Breaks End for EVs
Introduction:
Switzerland and Liechtenstein are witnessing a shift in their automotive markets. While electric vehicles (BEVs) initially enjoyed strong growth thanks to government incentives, the recent removal of tax exemptions is causing a slowdown in their adoption. Hybrid electric vehicles (HEVs), on the other hand, are experiencing a surge in popularity, now accounting for over 30% of new car sales.
The Rise and Fall of BEV Popularity:
For several years, both Switzerland and Liechtenstein encouraged the adoption of Battery Electric Vehicles (BEVs) through various tax breaks and subsidies. These incentives made BEVs more financially attractive to consumers, contributing to a significant increase in their market share. However, as government budgets tightened and the initial goals of promoting EVs were considered partially achieved, these tax exemptions were phased out.
Why BEVs are Slowing Down:
The removal of tax exemptions has had a direct impact on BEV sales. Without the financial incentives, the upfront cost of purchasing an electric vehicle becomes a more significant barrier for many consumers. Compared to traditional gasoline-powered cars, and even hybrid vehicles, BEVs often carry a higher initial price tag. This price difference becomes more pronounced when the tax breaks are gone, making BEVs less competitive in the market.
The Hybrid Surge: A Practical Alternative:
As BEV growth slows, Hybrid Electric Vehicles (HEVs) are stepping in to fill the gap. HEVs offer a compelling middle ground for consumers hesitant to fully commit to electric vehicles.
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Lower Upfront Cost: HEVs generally have a lower purchase price compared to BEVs, making them more accessible to a wider range of buyers.
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No Range Anxiety: Unlike BEVs, HEVs do not rely solely on electric power. They combine an electric motor with a traditional gasoline engine, eliminating the “range anxiety” that some drivers experience with electric vehicles. This is particularly important in Switzerland and Liechtenstein, where mountainous terrain and longer travel distances are common.
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Fuel Efficiency and Reduced Emissions: HEVs offer improved fuel efficiency compared to conventional gasoline cars and produce lower emissions, contributing to a cleaner environment. This appeals to environmentally conscious consumers who are not yet ready for a full EV.
Market Implications:
This shift in consumer preference has several implications for the automotive industry in Switzerland and Liechtenstein:
- Automakers’ Strategies: Car manufacturers are likely to adjust their strategies to focus more on hybrid models to meet the growing demand. They may also need to find ways to reduce the cost of BEVs to make them more competitive without tax incentives.
- Infrastructure Development: While the growth of BEVs may slow, the need for charging infrastructure will remain important, especially as the overall number of electric vehicles on the road continues to increase. Public and private investment in charging stations will still be necessary to support the electric vehicle market in the long term.
- Government Policy: The governments of Switzerland and Liechtenstein may need to re-evaluate their policies to ensure they are effectively promoting the adoption of cleaner vehicles. This could involve exploring alternative incentives or focusing on infrastructure development to support the transition to electric mobility.
Conclusion:
The automotive market in Switzerland and Liechtenstein is evolving. The removal of tax exemptions for BEVs has created a challenging environment for their continued growth, while the practicality and affordability of hybrid vehicles are driving their increasing popularity. This trend highlights the importance of considering both financial incentives and consumer preferences when promoting the adoption of new automotive technologies. The future of the automotive market in these countries will depend on how automakers and governments adapt to these changing dynamics.
HEVが3割超、免税措置廃止でBEV減速（スイス、リヒテンシュタイン）
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-06-08 15:00, ‘HEVが3割超、免税措置廃止でBEV減速（スイス、リヒテンシュタイン）’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.
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