Dutch Auto ABS: Electric Vehicles on the Charge
AutoSummary
This commentary discusses the transition towards alternatively fuelled vehicles and the relevance for auto asset-backed securities (ABS) in the Netherlands. DBRS Morningstar reviewed recent vehicle fuel type-related trends in the Netherlands and discusses their impact on auto ABS transactions, including:
-- The shift away from internal combustion engine (ICE) vehicles, predominantly diesel, towards zero- and low-emission vehicles (ZLEVs);
-- The direct effect of taxation policies on vehicle fuel type mix;
-- The impact of these changes on existing Dutch auto ABS; and
-- Residual value uncertainty for both ZLEVs and ICE vehicles.
DBRS Morningstar expects the collateral supporting receivables in auto ABS transactions it rates in the Netherlands to continue shifting towards alternatively fuelled vehicles.