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

author: FutureCar Staff    

The German government has allocated a significant amount of funding to support the purchase of electric cars. According to business daily Handelsblatt, a total of €9.5 billion ($A15.6 billion) has been spent on subsidizing the purchase of two million electric vehicles. The Federal Office for Economic Affairs and Export Control (BAFA) has reported that the total number of approvals for purchase premiums reached two million in September.

Out of the two million subsidized vehicles, 1.23 million were battery-powered electric cars, while 770,000 were plug-in hybrids. Surprisingly, only 400 fuel cell cars received subsidies through the scheme. This year alone, BAFA has received over 300,000 applications for subsidies. However, experts are skeptical about the government's target of having 15 million electric vehicles on the road by 2030.

Germany has been actively promoting the purchase of low-emission vehicles since 2016. Starting from this year, only battery-powered or fuel cell vehicles are eligible for subsidies. Previously, the subsidy also covered hybrid vehicles known as "plug-in hybrids" that combine a combustion engine with an electric motor. The current subsidy amounts to 4,500 euros for cars costing up to 40,000 euros and 3,000 euros for those costing between 40,000 and 65,000 euros.

However, there will be changes to the subsidy program in the future. From January 1, 2024, the subsidy for cars costing up to 45,000 euros will be reduced to 3,000 euros. Additionally, since September 1, 2023, only private individuals are eligible to apply for the subsidies.

The German government's efforts to support the transition to electric vehicles are commendable. By providing substantial subsidies, they aim to accelerate the adoption of electric cars and reduce carbon emissions in the transportation sector.

Source: Clean Energy Wire

FutureCar Staff