Germany has announced a stimulus programme for the auto industry that includes new incentives for electric vehicles but not conventional powertrain ICE vehicles – which the industry had also been lobbying for.
Reuters reported that Berlin’s plan doubles electric car subsidies and lowers VAT to 16% from 19%.
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Gas stations in Germany will also be required to provide electric vehicle charging.
Electric cars will be boosted by an EUR6,000 purchase incentive if the car price tag is under EUR40,000.
Reuters noted this brings consumer incentives for electric cars in Germany to EUR9,000 if a EUR3,000 manufacturer incentive is also included.
The EV incentive is especially timely for VW which is introducing its ID.3 electric car – which falls under the EUR40,000 threshold.
While Berlin’s incentive programme is squarely targeting electric vehicles whereas the French stimulus scheme also includes petrol and diesel cars.
The German auto industry trade association seemed disappointed. In a statement, VDA President Hildegard Müller said: “The VDA regrets that the proposed economic stimulus package only partially accepted the automotive industry’s proposals for a broad-based and immediately effective economic stimulus.”
However, he added: “The reduction in VAT, which is limited to half a year, and the doubling of the state’s share of the environmental bonus for the purchase of electric cars, however, provide positive impulses and will be able to make a contribution to boosting the currently very weak demand in the automotive market.”
