Germany will stop subsidizing electric cars – reports

Germany will reduce financial incentives for the purchase of electric cars in 2023 following an agreement in the governing coalition, as the cars’ growing popularity makes state subsidies unnecessary, the economy ministry said.

Incentives for electric car buyers will expire once the 3.4 billion euro ($3.44 billion) budget allocation for the next two years is spent, government sources told Reuters. Other news agencies also spread the information.

“Electronic cars are becoming increasingly popular and will no longer need government subsidies in the near future,” Economy Minister Robert Habeck said in a statement quoted by Reuters.

Under the plan, premiums for all-electric vehicles priced below €40,000 will drop to €4,500 in early 2023, from €6,000 currently, before falling to €3,000 the following year.

The premium for cars priced over €40,000 will be reduced from €5,000 to €3,000 at the beginning of next year.

There is no subsidy for cars priced above €65,000 and this will apply to cars priced €45,000 and above from 2024.

Subsidies on company cars will be scrapped and only private customers will benefit from the scheme.

The government will also end incentives for plug-in hybrid (PHEV) vehicles at the end of the year, which the economy minister backed amid doubts about the twin vehicle’s climate credentials because they are heavier and battery mode often only lasts longer. short distances.

“For the next financing round, we are clearly focusing on climate protection and financing only battery electric vehicles,” Habek said in a statement quoted by Reuters.

The German cabinet signed off on a draft climate action budget to secure funding for the scheme this week.

Sales of all electric cars in Germany almost doubled to 328,000 in 2021 compared to 2020, thanks in part to the scheme. There are now more than 600,000 BEVs on German roads. Including hybrids, there are more than a million.

VW, Mercedes-Benz Benz and BMW have stepped up the introduction of new electrified models and Building new factories or “transforming” existing factories to build them Locking up scarce battery raw material supplies from abroad.

The share of pure electric vehicles in new car registrations in Germany was recently around 14%, Reuters said.

Volkswagen has the largest share of the electric car market in Germany with 20.3%, followed by Tesla with 11.2%. [and a new assembly plant in Berlin]According to the latest data of the Automobile Agency KBA.

According to reports, the VDA auto association criticized the planned reduction of subsidies.

“At a time of increased costs and burdens, the decision to make unilateral and sweeping cuts is incomprehensible,” VDA President Hildegard Müller said in a statement quoted by Reuters.

He also criticized the move to exclude company cars from the initiative, saying “a shift to e-mobility is needed across all fleets”.

Supplemental car grant cancellation currently leaves The UK as the only major European market without purchase incentives for private EV buyers.

Germany will stop subsidizing electric cars – reports

Source link Germany will stop subsidizing electric cars – reports

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