Germany ending subsidies for plug-in hybrids earlier than planned

The German government is set to cut subsidies for plug-in hybrid vehicles earlier than originally planned, public broadcaster ARD reports. The economy and climate ministry (BMWK) is now planning to cancel state subsidies at the end of 2022 – earlier than what the government had initially agreed to in its coalition agreement. At the same time, financial support for pure electric cars is to be gradually reduced. "We want to sharpen the focus in the future promotion of e-cars and focus more on climate protection," Green Party minister Robert Habeck told newspaper publisher Funke Mediengruppe. "In our opinion, plug-in hybrids are marketable and no longer need public funding." The ministry plans to gradually reduce support for purely battery-electric vehicles from 1 January 2023 to 2025 -- as provided for in the coalition agreement.

Germany’s previous government last year already made it more difficult for car buyers to access state subsidies for plug-in hybrids, which have been widely criticised for not being sufficiently environmentally friendly. While interest in purely electric cars has been growing among German consumers, e-car subsidies have also faced criticism for fueling lucrative resales of subsidised vehicles abroad.