Germany To Increase EV Incentives By 50 Percent

Germany is planning to boost by 50 percent the incentives available for purchasing an electric or electrified car, in a bid to accelerate the transition to cleaner vehicles.

Under the name ‘Environment Bonus’, as the German government calls it, the revised subsidies will rise to as much as 6,000 euros (around $6,600 in current exchange rates) per model, with the car companies to continue covering half of the cost.

The German government wants to have 10 million electric vehicles on its roads by 2030, Reuters repors, as part of their strategy to boost their auto industry against that of the United States and China.

Related: Volkswagen ID.3 Electric Hatchback Production Starts At Zwickau

Earlier this week, VW started production of the ID.3 electric hatchback, which will be priced at around 30,000 euros ($33,000). According to Evercore ISI analysts, the revised incentives will drop the price of a midrange ID.3 to around 24,000 to 25,000 euros ($26,500 to $27,600) in its home market.

VW said that the Zwickau factory will be producing 100,000 electric vehicles from next year, raising its annual output to 330,000 by 2021. So far, more than 35,000 customers have expressed their interest in the electric ID.3.

Chancellor Angela Merkel said that Germany will invest 3.5 billion euros ($3.9 billion) by the year 2035 in building a charging infrastructure for electric cars, promising 1 million charging stations by 2030.

Germany is the second biggest market for electric cars in Europe, sitting closely behind Norway with almost 53,000 battery-electric car sales this year. Changes in the EV subsidies are expected to take effect this month and will remain active through 2025.

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  • yay

    more taxes…

    • We pay the same taxes anyway, might as well get something back

      • Ben

        What?

  • Christian Wimmer

    No thanks.

    Maybe in 10-15 years when battery energy density, quicker charging and longer battery life have improved, THEN I might consider one. For now I want to enjoy my ICE for as long as possible.

    • HD

      The Model 3 is already quicker than the BMW M3 and costs much less, let alone maintenance. There is a 7 yrs old Tesla Model S with 1% battery degradation. That’s nothing. You lose more HP in an ICE engine during that time. All your ICE is doing is pollution, thanks.

      • Mr. EP9

        No one cares. The S is outdated, the 3 is ugly as sin and both aren’t even close to being affordable for the average person.

      • EyalN

        Tesla are losing billions a year and that is after they get billions from every government in the world.
        If the model 3 was sold to make profit like any other car in the world the price for one will be over $100000
        A car in a low quality like model 3 fits the indian market, not a replacement for bmw m3

    • charlotteharry57

      I agree. This is from a US perspective. Fuel prices are much higher in Europe, so that situation is different. Also, to get the ball really rolling in the US, incentives such as these (maybe higher) will be a must.

  • Nick G

    Muck Ferkel

    • Six_Tymes

      she ruined Germany. That said, this “incentive” I think will eventually work out well for VW once the ID’s have been launched.

  • BodhiStrafe

    If Germany’s auto industry fails, Germany fails. They bet the farm on EVs and will do anything to ensure success. Any one us would do the same.

  • Super Rob

    In any industry when you have a product that doesn’t sell you discount it down until you can sell it. Germany should invest in battery tech instead. Once batteries can recharge in 5-7 minutes like refueling a regular car, then the change will happen without incentives.

  • javier navarro

    How many more years are they going to subsidize these cars? Until the charge rate is equal to that of a gas car, most people won’t adopt them. That and the ugly styling that EV’s seem to posses. The only nice looking car to date is the model S and that car is starting to show it’s age. The rest look terrible.

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