BERLIN (TBEN) — The German government plans to cut incentives for electric car buyers and end incentives for buying plug-in hybrids by the end of this year.
The government had announced shortly after taking office in December that from 2023 it would only make payments for electric vehicles that “demonstrated a positive climate protection effect”. It revealed details of the new system late Tuesday.
Currently, electric car buyers are eligible for premiums of up to 6,000 euros ($6,100) and people who buy plug-in hybrids can get up to 4,500 euros.
The Ministry of Economy and Climate said the number of electric cars on the road is increasing rapidly, with a total expected to reach nearly 2 million this year. They are “growing in popularity and will not require state subsidies for the foreseeable future,” Secretary of State Robert Habeck said in a statement.
From January, the premiums for electric and fuel cell cars will be reduced to 4,500 euros each for vehicles with a list price of up to 40,000 euros and to 3,000 euros for cars of 40,000-65,000 euros.
From September next year, the incentives will be limited to individuals, although the government is considering allowing small businesses and charitable organizations to remain eligible.
From January 2024, the premiums will be reduced to 3,000 euros for vehicles with a price of up to 45,000 euros and removed for more expensive cars.
Funding will also be capped and incentives will end once they are exhausted. The German news agency dpa, citing unidentified government officials, reported that the total available for 2023 and 2024 will be 3.4 billion euros.
The government aims to have at least 15 million fully electric cars on the road by 2030. She also wants to step up efforts against climate change by expanding renewable energy use and bringing forward Germany’s exit from coal-fired power from 2038, “ideally” to 2030.
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