03 June, 2019

German EV incentives extended

The German Federal Ministry of Economics has extended the purchase incentives for battery electric vehicles (BEVs), plug-in hybrids (PHEVs) and fuel cell vehicles (FCVs) until 2020.

‘We are extending the purchase premium for electric cars until the end of 2020, because we need continuity in support.’

BEVs and FCVs each receive a subsidy of €2,000 from the state, which is matched by the carmaker, and PHEVs receive €1,500.

‘We are extending the purchase premium for electric cars until the end of 2020, because we need continuity in support. The buyer’s premium has proven its worth in practice,’ said Economics Minister Peter Altmaier.

‘The number of applications is rising steadily – slower than we had hoped for, but it is all the more important to ensure continuity in funding,” he added.

The funding guideline for the continuation will be published later this week – the new funding will replicate the previous one, but will also include a subsidy for visually impaired drivers.

Continued support

Increasing funds to encourage the uptake of electric vehicles is part of Federal Minister of Transport and Digital Infrastructure Andreas Scheuer’s plans to heavily cut CO2 emissions within the next two years.

The news of the extension to the subsidy programme comes as Germany proposes to double the Umweltprämie (‘Environmental Bonus’) from €2,000 currently to €4,000 by 2020 for BEVs and FCVs with a purchase price of no more than €30,000.

Cars priced between €30,000 and €60,000 will also benefit from a higher government incentive, albeit with a much smaller increase to €2,500. For light commercial vehicles and taxis, however, the subsidy is expected to be even higher. An electric taxi could ultimately be eligible for subsidies of up to €8,000 in total – depending on whether carmakers also increase their contributions.