No more premium for hybrids
Government significantly reduces subsidies for electric cars
07/26/2022, 4:45 p.m
The federal government is planning cuts in the promotion of electric vehicles. This means that buyers of e-cars should receive significantly less money from the state from next year at the latest. It is even more drastic with hybrids – there would be no subsidies at all.
There will be significantly less funding for the purchase of an electric car in the future. For electric vehicles that cost less than 40,000 euros, buyers will in future receive 4,500 euros instead of the previous 6,000 euros, according to government circles. According to the “Handelsblatt”, this should apply from 2023 at the latest. The subsidy for hybrids is to be completely abolished by the end of the year – here the subsidy by the federal government is currently a maximum of 4500 euros.
Purely electric vehicles with a list price of over 40,000 euros are to be funded with 3000 euros in the future, and there will continue to be no funding for cars over 65,000 euros. In the course of the coming year, the maximum price for funding is also to be reduced to 45,000 euros.
Accordingly, only private car purchases should be subsidized in the future. There should no longer be a purchase premium for the purchase of electric service or trades vehicles. From a tax point of view, however, electric cars should continue to be preferred as company cars. The funding is to be phased out completely when the available funds of 2.5 billion euros have been paid out.
VDA: “Heavy dampener” for incentive to buy
It is still unclear whether the premium can still only be applied for when the vehicle is handed over and not when the contract is concluded. Due to the long delivery times, many car buyers are currently unable to calculate whether and to what extent a subsidy will be paid out.
The government’s decision to reduce subsidies for electric vehicles can be seen as a success for the FDP. Their party leader, Finance Minister Christian Lindner, had recently repeatedly criticized the subsidies – and would even have liked to abolish them altogether.
In an interview with Funke Mediengruppe, the President of the German Association of the Automotive Industry (VDA), Hildegard Müller, criticized the cut in funding as “disappointing”. This decision is “a severe damper on the incentive to buy an electric car”. The abolition of the premium for the purchase of hybrids will particularly affect drivers who have to travel longer distances.
Müller also sharply criticized the lack of clarity regarding the timing of the application. “Due to the additional cap on funding and the unclear award date, the premium threatens to become a gamble for consumers.” The car manufacturers are willing to link the payment to the date of purchase of the electric car. “This important protection of confidence fails because of the state.”