Friday, August 19, 2022
News Germany Will Gradually Cut EV Subsidies Starting Next Year

Germany Will Gradually Cut EV Subsidies Starting Next Year

As EV sales increase, there’s no longer any reason to incentivize their purchase


  • Incentives will be cut completely on vehicles over 45,000 euros in 2024.

  • German EV sales have almost doubled from 2020 to 2021.


While the US government is considering an EV incentive increase as well as lifting credit limits, and Canada extending its incentive programs, Germany is about to shut the door on them for good.

Germany Plans to End PHEV Incentives by the End of 2022

The reason is simple: EVs are growing in popularity so there’s no need to “convince” consumers to buy one anymore.

“E-vehicles are becoming more and more popular and will no longer need government subsidies in the foreseeable future,” Economy Minister Robert Habeck said in a statement on Tuesday as shared by Automotive News Europe.

Plug-in hybrid incentives end this year as their “greenness” has seriously been put into question. German electric vehicle buyers still have a few years to benefit from some deals. Vehicles priced at or below 40,000 euros will see their incentive drop to 4,500 euros from 6,000 euros beginning early next year. In 2023, it will further drop to 3,000 euros.

Cars priced at more than 40,000 euros will have their current incentive of 5,000 euros drop to 3,000. And anything over 45,000 euros will go without incentives from 2024.

A similar scenario will likely occur in North America but we are still many years away.

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Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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