Germany introduces subsidies for the purchase of EV

Germany introduces subsidies for the purchase of EV

Owners of new electric cars, hybrids, and fresh used electric cars in Germany receive a purchase subsidy. Higher financial assistance from the state for the purchase of electric vehicles entered into force on February 19, 2020, according to industry associations citing the Federal Ministry of Economics. The industry was desperately waiting for this, an increase in subsidies was announced in November last year.

“Increasing the environmental bonus is an essential tool to help electric mobility make a breakthrough in Germany. With the official start of a higher purchase bonus, the electric car market is further developed,” says Reinhard Zirpel of the VDIK Foreign Manufacturers Association. VDA Automotive Industry Association President, Hildegard Müller, says: “This is an important milestone for the desired increase in electric mobility.”

According to Frankfurter Allgemeine, the so-called environmental bonus for electric vehicles will be significantly increased. With a net price list price of less than €40,000, buyers of electric vehicles with a battery (BEV) receive a subsidy of €6,000, and hybrids with replaceable modules (PHEV) €4,500 (instead of €3,000). With a net price of more than €40,000 and up to €65,000, subsidies are provided in the amount of €5,000 for the purchase of BEV and €3,750 (instead of €3,000) for PHEV.

New bonuses for the purchase were applied to all electric vehicles that were registered after November 4, 2019 - for EV and hybrids with a plug-in module. The federal government has already decided to increase funding as part of its climate program last September. A follow-up procedure involving the EU Commission dragged on. Brussels gave the green light only last week. The directive was published in the Federal newspaper on Tuesday.

The federal government and industry have contributed €600 million to the purchase bonus that has been in force so far. New rules will be valid until the end of 2025.

The VDA Industry Association has described the new awards as “an important milestone for the desired increase in electric mobility.” For the first time under certain conditions, a purchase bonus can be applied to fresh used electric vehicles, but they should not have been in use for more than 12 months or more than 15,000 kilometers (9,321 miles). For such cars, it is possible to get €5,000 for electric vehicles and €3,750 for hybrids.

Featured image: The Next Web

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Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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