27 Jul 2022, 12:32
Julian Wettengel

Germany lowers e-car support

Clean Energy Wire / ARD

The German government has decided to reduce support for e-cars and increasingly limit it to fully electric cars, ending subsidies for plug-in hybrids, said the economy ministry. E-mobility has made the transition to the mass market with Germany coming close to 2 million registered e-cars this year, argued economy minister Robert Habeck. “E-vehicles are becoming increasingly popular and will no longer need government subsidies in the foreseeable future,” he said. Finance minister Christian Lindner said: "In view of the billions in profits made by the automobile companies, such support is no longer necessary." Support for plug-in hybrids stops at the end of this year. From 1 January 2023, the state will support the purchase of battery electric or fuel cell cars with 3,000-4,500 euros, depending on the purchase price. Support for cars that cost more than 45,000 euros will end at the start of 2024. In addition, from September 2023, only private consumers will receive the support - large company fleets will no longer be eligible.

Public broadcaster ARD reported that a total of 3.4 billion euros are available for e-car support in 2023 and 2024. The funds for the buyer’s premium are provided through the federal Climate and Transformation Fund. “When the funds are exhausted, the support with the buyer’s premium ends,” said the economy ministry.

The Social Democrats (SPD), Green Party and the pro-business FDP had stipulated in their coalition agreement that e-car support would be lowered and reformed. Until the changes take effect, e-car buyers can receive up 6,000 euros from the state when they buy a new vehicle, plus up to 3,000 euros from the car manufacturers themselves, to make up the so-called buyer’s premium (“Kaufprämie”). The Federal Motor Transport Authority (KBA) recently said that a quarter more electric cars were registered in Germany in the first half of 2022 than in the same period last year.

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