Germany to reduce financial incentives for the purchase of electric cars
Right now, buyers of electric-only cars are eligible for incentives 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 roads is growing rapidly, with an expected total of nearly 2 million this year. They are “becoming increasingly popular and will not need any state subsidy for the foreseeable future,” Minister Robert Habeck said in a statement.
From January, the incentives for electric and fuel cell cars will be reduced to €4,500 each for vehicles with a list price of no more than €40,000 and to €3,000 for cars costing between €40,000 and €65. 000 euros.
From September next year, the incentives will be limited to individuals, although the government is considering allowing small businesses and charities to remain eligible.
From January 2024, the incentives will be reduced to €3,000 for vehicles priced below €45,000 and removed for more expensive cars.
Funding will also be capped and incentives will end once they run out. 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 wants to have at least 15 million fully electric cars on the road by 2030. It also aims to step up efforts against climate change by expanding the use of renewable energy and advancing Germany’s exit from the coal power from 2038, “ideally” by 2030.
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