Germanys latest aid package for its auto industry is aimed at  supporting manufacturing down the supply chain as well as stimulating final demand for electric cars (pictured: VW ID.3 manufacturing at Zwickau)

Germany's latest aid package for its auto industry is aimed at supporting manufacturing down the supply chain as well as stimulating final demand for electric cars (pictured: VW ID.3 manufacturing at Zwickau)

Germany will extend grants for electric vehicle purchases until 2025 as part of a package of measures designed to support its auto industry and ease the transition to an electrified future.

Germany will also expand its national battery charging network. The government will also offer incentives to replace aging trucks and help component makers invest in new advanced technologies.

Germany's automotive industry is at the heart of its export-oriented, engineering and manufacturing based economy. German industrial leaders are nervous about the scale of the transition ahead and Chancellor Mrs Merkel has consulted auto industry executives on long-term support measures, as the industry also faces the challenges brought by the COVID-19 pandemic.

Berlin boosted subsidies earlier this year to as much as EUR9,000 for electric vehicle purchases. In the latest aid package there is another EUR1bn to extend electric car purchase grants to 2025 as well as EUR1bn to replace ageing trucks with newer (and therefore cleaner) ones. There is also EUR1bn to support technology investment by suppliers and EUR2bn from existing stimulus funds to support suppliers with adapting manufacturing facilities.

It is also hoped to have 50,000 new public battery charging stations by the end of 2021 and also increase fast-charging capabilities at petrol stations over the next three years.