Saturday, July 20, 2024
NewsGermany Doesn’t Offer EV Subsidies Anymore

Germany Doesn’t Offer EV Subsidies Anymore

Germany abandonned it's EV incentive program yesterday, effective immediately.

  • This cut became effective Sunday, only a day after they were announced.

  • This is because the climate transformation budget has seen significant cuts recently.

  • Automakers are expected to compensate customers who have recently bought an EV expecting to receive a subsidy.

The German government has now put an end to the country’s environmental bonus for electric vehicle purchases.

Starting yesterday (December 17), German car buyers interested in an EV have to pay the full price, without receiving financial help or incentives from the government.

While an end to green vehicle subsidies around the world is inevitable as more and more EVs are sold each year, no one expected it to come so soon in Germany.

Indeed, the official announcement only came a day before the program ended, on December 16. To make matters worse, making this announcement on a Saturday meant that most buyers who were closing in on a deal couldn’t even rush to their dealership in order to benefit from the subsidy.

In addition, only the registration applications that were received before midnight last Sunday will be processed and granted the subsidy, which means that some buyers might have already bought a car but won’t receive the financial assistance they expected.

This decision was prompted by a ruling from the German High Court which resulted in substantial cuts to the Climate and Transformation Fund (KTF), from which the EV incentives were paid out.

Following a lawsuit put forward by the Conservative opposition party, the court ruled that funds initially set aside for the Covid pandemic couldn’t be used in climate protection projects, which will result in a 12 billion Euro cut to the budget in 2024, and a further 45 billion Euro cut until 2027.

According to the government coalition, the remaining 160 billion euros will not be sufficient to continue offering EV subsidies without jeopardizing other climate initiatives.

Since the environmental bonus was supposed to continue at least through 2024, the German Association of the Motor Trade wants the government to continue paying out subsidies until December 31 2023 to make sure buyers who are currently in the process of purchasing an EV get the help they were expecting.

At the moment, automakers are expected to provide compensation to those who bought their electric vehicles under the assumption they would receive a governmental rebate.

Germany still says that electric vehicles will be an instrumental part of its plans to reduce emissions and fight climate change, so it will be interesting to see the effect this decision to cut incentives will have on EV sales over the next year.

Source: Electrive

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