19 Feb 2020, 14:08
Rachel Waldholz

Higher buyer’s premium for e-cars goes into effect in Germany

Frankfurter Allgemeine Zeitung

Germany’s increased subsidy for electric vehicles goes into effect today (Wednesday, Feb. 19), reports. The increase in the e-car buyer’s premium was first announced in November, as part of the German government’s climate package. The subsidy will apply to electric cars, plug-in hybrids, and, for the first time, used electric cars bought in the last year. Buyers are now eligible for a subsidy of up to €6,000 for battery electric vehicles (BEVs), and €4,500 for plug-in hybrids (PHEVs). The premium applies to vehicles with a list price of up to €60,000, with the cost split between the federal government and participating carmakers.

Auto industry representatives say the new subsidies are necessary to encourage the widespread adoption of electric vehicles. "The increased environmental bonus is a decisive instrument to help electric mobility achieve a breakthrough in Germany,” said Reinhard Zirpel of the Association of International Motor Vehicle Manufacturers (VDIK), according to

The successful transformation of the car sector is seen as a crucial challenge for Germany, both to reach the country’s climate targets and to maintain its position as a technologic leader in the industry. The government plans to have up to ten million e-cars on the road by 2030 and estimates that the money available for the buyer's premium will be enough for about 700,000 e-cars.

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