Germany's Subsidies for Two Million Electric Cars

author: FutureCar Staff    

The German government has allocated €9.5 billion ($A15.6 billion) to support the purchase of two million electric cars, according to business daily Handelsblatt.

The Federal Office for Economic Affairs and Export Control (BAFA) confirmed that as of September, a total of two million approvals for purchase premiums had been granted.

Out of the subsidies provided, 1.23 million battery-powered electric vehicles and 770,000 plug-in hybrids were purchased. Only 400 fuel cell cars received support through the program.

BAFA has received over 300,000 applications for subsidies this year. However, experts doubt that the government's target of having 15 million electric vehicles on the road by 2030 will be achieved.

Germany has been promoting the purchase of low-emission vehicles since 2016. Starting this year, only battery-powered or fuel cell vehicles are eligible for subsidies.

Previously, the subsidy also covered hybrid vehicles, which combine a combustion engine with an electric motor that can be charged externally (known as "plug-in hybrids").

Currently, the 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. From January 1, 2024, the subsidy for cars costing up to 45,000 euros will be reduced to 3,000 euros. Since September 1, 2023, only private individuals are eligible to apply for the subsidy.

Source: Clean Energy Wire (reproduced with permission)

FutureCar Staff