EV subsidies to be pulled in 2025.
PHEVs continue to be criticized as they are not truly climate-friendly.
Many experts have said that incentives used to promote the purchase of plug-in hybrid and battery electric vehicles were not sustainable and were very temporary. In Germany, these subsidies now have a clear expiry date.
The first step in Germany’s Ministry of Economic Affairs’ proposed future plans will be to pull all incentives for PHEVs as early as the end of 2022. One of the driving factors behind the “dismissal” of PHEVs is that they’ve been on the receiving end of much criticism due to the fact that they offer only a limited EV range. Once the battery is depleted, they function like a compromised hybrid vehicle that is not entitled to incentives and has, in most cases, proven to be more energy-efficient.
“We want to sharpen the focus in the future promotion of e-cars and focus more on climate protection,” said Federal Minister of Economics Robert Habeck. “In our opinion, plug-in hybrids are marketable and no longer need public funding,” said the Green politician of the Funke media group.
From January 1st, 2023, according to Tagesschau, only fully-electric vehicles will be eligible for incentives. Even so, the subsidy amounts will drop over the following years and eventually reach $0 come 2026. The breakdown will be as follows: 4,000 euros in 2023, and 3,000 euros in 2024 and 2025. The current amounts are 9,000 euros for EVs and up to 6,750 euros for PHEVs.
