German Transport Minister wants to 'significantly raise e-car subsidy'
Germany could be poised to increase subsidies for e-car purchases by up to €4,800, according to media reports.
In a government report obtained by German business newspaper Handelsblatt, experts from numerous research institutes evaluated a draft climate protection proposal from the Transport Ministry.
The proposals would extend the deadline for subsidy applications and increase the amount of money available to e-car buyers.
According to the report, Transport Minister Volker Wissing, of the Free Democrats (FDP), plans to offer the subsidies for purely electric or fuel-cell vehicles until 2027 in a multi-billion euro extension of the scheme.
People in Germany who buy a car with a maximum purchase price of €40,000 will, according to the plans, receive a subsidy of €10,800 instead of the current €6,000. In addition, the manufacturers would receive a subsidy of €3,000.
READ ALSO: E-cars and sleeper trains: How Germany’s new government will reform transport
For more expensive vehicles up to €60,000, the ministry plans to cover €8,400 of the cost price, instead of the €5,000 promised so far.
From the second half of 2023, buyers will have to scrap a combustion car that is at least 11 years old in order to still receive the full subsidy. This could account for around €1,500 of the subsidy.
Both premiums are to be reduced from 2025 and, according to the report, will cost up to €73 billion over the duration of the scheme.
In contrast to federal Economics Minister Robert Habeck (Greens), Wissing wants to continue subsidising the purchase of plug-in hybrids until 2024 rather than ending it this year.
He wants to halve the subsidy to €2,250 or €1,875, depending on the purchase price of the hybrid car.
According to the coalition agreement, all purchase subsidies are supposed to end in 2025 and will be gradually reduced over time until then.
The original plans foresaw a maximum subsidy of €4,000 in 2023 and of €3,000 in 2024 and 2025.
Accordingly, only €5.9 billion has been planned for e-car subsidies in the budget.
READ ALSO: Germany to slash subsidies for electric cars
Comments
See Also
In a government report obtained by German business newspaper Handelsblatt, experts from numerous research institutes evaluated a draft climate protection proposal from the Transport Ministry.
The proposals would extend the deadline for subsidy applications and increase the amount of money available to e-car buyers.
According to the report, Transport Minister Volker Wissing, of the Free Democrats (FDP), plans to offer the subsidies for purely electric or fuel-cell vehicles until 2027 in a multi-billion euro extension of the scheme.
People in Germany who buy a car with a maximum purchase price of €40,000 will, according to the plans, receive a subsidy of €10,800 instead of the current €6,000. In addition, the manufacturers would receive a subsidy of €3,000.
READ ALSO: E-cars and sleeper trains: How Germany’s new government will reform transport
For more expensive vehicles up to €60,000, the ministry plans to cover €8,400 of the cost price, instead of the €5,000 promised so far.
From the second half of 2023, buyers will have to scrap a combustion car that is at least 11 years old in order to still receive the full subsidy. This could account for around €1,500 of the subsidy.
Both premiums are to be reduced from 2025 and, according to the report, will cost up to €73 billion over the duration of the scheme.
In contrast to federal Economics Minister Robert Habeck (Greens), Wissing wants to continue subsidising the purchase of plug-in hybrids until 2024 rather than ending it this year.
He wants to halve the subsidy to €2,250 or €1,875, depending on the purchase price of the hybrid car.
According to the coalition agreement, all purchase subsidies are supposed to end in 2025 and will be gradually reduced over time until then.
The original plans foresaw a maximum subsidy of €4,000 in 2023 and of €3,000 in 2024 and 2025.
Accordingly, only €5.9 billion has been planned for e-car subsidies in the budget.
READ ALSO: Germany to slash subsidies for electric cars
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.