Germany's $A16.5 bn investment in two million electric cars

author: FutureCar Staff    

The German government has allocated a significant amount of money to support the purchase of electric cars, with a total of €9.5 billion ($A15.6 billion) being spent, according to business daily Handelsblatt.

The Federal Office for Economic Affairs and Export Control (BAFA), responsible for administering the support payments, stated that by September, a total of two million approvals for purchase premiums had been granted.

Out of the two million subsidies, 1.23 million were used to purchase battery-powered electric vehicles, while 770,000 were used for plug-in hybrids. Only 400 fuel cell cars were subsidized through this program.

BAFA has received over 300,000 applications for subsidies this year alone. The government's goal is to have 15 million electric vehicles on the road by 2030, although there is skepticism among experts regarding the achievability of this target.

Since 2016, Germany has been actively promoting the purchase of low-emission vehicles. Starting this year, only battery-powered or fuel cell vehicles are eligible for subsidies, whereas in previous years, hybrid vehicles were also covered by the subsidy program.

Currently, the subsidy amounts to 4,500 euros for cars priced up to 40,000 euros, and 3,000 euros for cars priced between 40,000 and 65,000 euros. However, from January 1, 2024, the subsidy for cars priced up to 45,000 euros will be reduced to 3,000 euros. Additionally, as of September 1, 2023, only private individuals are eligible to apply for the subsidy.

This article was originally published on Clean Energy Wire and is reproduced here with permission.

FutureCar Staff