Lower Saxony’s Prime Minister Stephan Weil (65, SPD) has said against the background of the slow sales of Electric cars called for the state purchase premium to be reinstated. From his point of view, this would be “very helpful” because we must above all “think about private consumers with smaller wallets,” Weil told the “Neue Osnabrücker Zeitung” on Friday.
The subsidy of up to 4,500 euros for new cars was no longer available at the end of last year. There was also a half allowance from the manufacturer. “I have always considered the federal government’s abrupt stop to sales promotion to be wrong,” said Weil, whose state holds 20 percent of the shares in the Volkswagen car company.
Weil is also a member of the supervisory board of the car manufacturer, which is currently the largest employer in the state even threatening to close plantsin order to increase the profitability of its core brand VW in particular. The works council has already announced massive resistance to this. IG Metall suggests to reintroduce the four-day week at VW.
Norway is reducing subsidies for electric cars
According to Weil, it is clear that sales of electric cars are still increasing in the European countries where the funding has been maintained. “Countries in which this has not happened – like in Germany – are unfortunately experiencing a different development,” said Lower Saxony’s Prime Minister.
Norway is often cited as a model country for electromobility. In the Scandinavian country, combustion engines hardly play a role anymore. According to figures from the Norwegian transport authority OFV
The proportion of new registrations in Norway in August was 94.3 percent. A further 1.4 percent of newly registered vehicles were plug-in hybrids.
Volkswagen no longer sells combustion engines in the country also points out the generous state funding for electric cars
. Until the end of 2022, electric vehicles were exempt from the 25 percent VAT upon purchase and from registration fees. But Norway has also reduced its subsidies. Since the beginning of 2023, electric car buyers have had to pay VAT of 25 percent for a purchase price of the equivalent of 46,700 euros.
The new registrations for Electric cars in Germany have been declining for months. According to current figures from the Federal Motor Transport Authority, in August they fell by 68.8 percent compared to the same month last year. In addition to the expiration of public funding for the purchase of electric cars, the reasons are also the high prices compared to combustion engines.
The government now wants to tax sales of electric cars Boost relief for company cars. According to a cabinet decision on Wednesday, companies should be able to write off electric company cars more quickly. There are also lower tax rates for more expensive electric models.