The
government and automakers will share the costs of the EUR 600 million rebate
incentive, which will be available until 2019 or until the government share of
the funding runs out.
The cabinet of German
Chancellor Angela Merkel has agreed on a €600 million subsidy program for
electric and hybrid vehicles.
The move is aimed at
helping meet national climate goals and boosting the e-car sector, which has
been slow to take off in Germany.
As part of the planned incentive,
customers would receive a €4,000 rebate when buying a new electric vehicle and
€3,000 when purchasing a plug-in hybrid car, the government announced this
week. In addition, buyers would also receive a 10-year tax break for new
electric vehicles.
In addition, further
incentives are planned to encourage companies to install charging stations at
the workplace for employees. Employees who charge their e-cars at work would
pay a reduced tax rate of 25%, for instance.
The government and auto
manufacturers will share the costs of the rebate incentive, which will be
granted until the government share of the €600 million runs out, or until 2019
at the latest, according to Clean Energy Wire.
Economy and Energy Minister
Sigmar Gabriel said progress on electric mobility was necessary to secure the
future of Germany’s car industry. "Growth in demand will trigger important and
necessary investments along the entire value chain of electro mobility.”
While the government aims
to have one million e-cars on the road by 2020, many experts have expressed
doubt that it will reach the target.
(pv-magazine)