Motorists can get a government premium for longer than previously planned when buying electric cars. In order to boost further weak demand, the federal government will extend the premium until the end of 2020. However, the subsidy may expire before the premium pot of a total of 1.2 billion before the end of 2020 is empty. Whether there will be a promotion in the years after that is open.
The premium should actually expire at the end of June. The “environmental bonus” was introduced three years ago but has not met expectations so far. Federal Minister of Economics Peter Altmaier announced on Friday in Berlin the extension, which had already indicated. “We need continuity in the promotion,” said the CDU politician, who has the lead on the environmental bonus.
Altmaier called on the auto industry to step up its efforts to expand electromobility. “The number of e-models available in the market is growing, but here the industry is in demand to make even better deals.” Internationally successful e-cars are also crucial for the future success of the German auto industry and thus for hundreds of thousands of jobs.
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4000 euros for electric cars, 3000 euros for hybrids
For pure battery cars there are 4000 Euro for the program, for hybrid cars 3000 Euro subsidy. The electric car must have a net list price for the base model of less than 60 000 euros. The pot contains 1.2 billion euros, half of which is financed by the federal government and the auto industry. The funds should not be increased.
Although new registrations for e-cars in Germany are rising, the number of vehicles is still at a low level. According to figures from the Federal Motor Transport Authority (KBA), the number of electric cars in 2018 was only around 83,000, compared with around 341,000 cars in hybrid cars – with a total fleet of 57.3 million vehicles.
Significantly more e-cars in Germany are also necessary, so that the carmaker can meet stricter climate requirements of the EU. A breakthrough in electromobility is also important for the Federal Government, so that climate targets for 2030 can be achieved. According to a government commission’s forecast, seven to ten million electric cars will be needed by 2030.
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What will happen after the expiration of the premium and if it will be increased again, is open. Transport Minister Andreas Scheuer (CSU) had proposed to double the premium. Scheuer’s plans as well as those of other ministries are discussed in the Climate Cabinet of the Federal Government. Basic decisions on a package of measures should be made in September.
So far, around 118,000 applications have been received by the responsible Federal Office of Economics and Export Control for the purchase premium, according to the Ministry of Economic Affairs. The amount of funding so far is according to “world” at around 400 million euros.
There are still various obstacles to the development of electromobility in Germany. So there is still no nationwide charging infrastructure. For example, industry associations have long been demanding changes in tenancy and homeownership law.
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From the point of view of the Association of the Automotive Industry, the fast and sustainable development of the charging infrastructure is the most important prerequisite for a successful market ramp-up of e-mobility. The current stock of 17,400 publicly accessible charging points in Germany was “completely inadequate”.
The chief executive officer of the VKU Municipal Council, Katherina Reiche, said it was right that the premium for e-cars be extended. The expansion of the charging infrastructure and customer-friendly charging would have to be speeded up.
Criticism came from the opposition. The FDP traffic expert Oliver Luksic said the purchase premium had failed: “The federal government sets one-sided and planned economy only on battery-powered electric mobility, the German key industry to the internal combustion engine is damaged.”
la / dpa