German Governmentโค Reinstates Electric Vehicle Subsidies
Berlin – The German government will resumeโฃ subsidies for electric โฃvehicles and plug-in โขhybrids,โข reversingโค a recent suspension and โoffering โbuyers โa financial incentive of up to โฌ4,500. The move, announced today, aims to bolster demand in the electric car market followingโค a sharp decline after theโฃ previous subsidyโฃ program ended December 31, 2023.
The reintroduction of financial โsupport comes as the automotive โฃindustryโ grapples โwith slowing EV sales โฃandโข concerns about meeting climate goals. While the initial subsidy program proved effective inโ accelerating EV adoption, its abrupt termination created uncertainty for consumers and manufacturers alike. The โnew program, though,โ differs from its predecessor, focusing exclusivelyโฃ on private buyers and requiring a minimum ownership period to prevent โข”fast flips” โคfor profit.
Unlikeโ the previous scheme, this round โขof subsidies excludes corporateโ customers,โฃ whoโฃ represent approximately two-thirds of new carโ sales in Germany.It is anticipated that โbusinesses placingโ large โorders may be able to negotiate comparable discounts directly โwith manufacturers. To qualify for the full โฃโฌ4,500 incentive, vehicles must beโ priced under โฌ40,000.A reduced subsidy will be availableโ for more expensive models, up to aโ maximum vehicle price of โฌ65,000.
A key condition of the โnew program โฃis a commitment from vehicle โowners to โretain ownership for at least one year.Selling the vehicle before this period elapses will โคrequire the โreturn of the subsidyโ amount.โข The German governmentโ allocated a budget of โฌ2.5 billion for the โprogram, which is expected to run until funding โis โขtired.
Sources: Tageschau.de, Wirtschaftswoche,โค InsideEVs, auto.cz.
