Germany Might Commit $2.2 Billion To Encourage Electric Car Adoption

1 year ago by Mark Kane 10

Plug-in electric car registrations in Germany – November 2015

Plug-in electric car registrations in Germany – November 2015

Audi e-tron quattro concept

Audi e-tron quattro concept

Incentives to buy plug-in electric cars is one of the main topics in focus in Germany after the government noticed that they will miss the 1 million electric car goal by 2020.

The situation is a lot different today than five years ago, because now German carmakers have introduced many all-electric and plug-in hybrid models, so launching incentives would now benefit the country’s domestic automakers as much as others.

According to Reuters, Germany could put €2 billion ($2.17 billion) to encourage the switch to EVs.

The main idea is to set a subsidy to buy electric cars. Other ideas are to expand the charging network and encourage federal offices to use electric cars.

“German Economy Minister Sigmar Gabriel wants to commit two billion euros ($2.17 billion) to encourage more people to buy electric cars, the newspaper Die Zeit reported…Gabriel also wants to expand charging stations and encourage federal offices to use electric cars – an initiative that will be funded under the current German budget without tax increases, he said.”

Knowing that there are likely some subsidies coming in the near-future, some consumers could delay purchase decisions this year.

Source: Reuters

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10 responses to "Germany Might Commit $2.2 Billion To Encourage Electric Car Adoption"

  1. Rebel44 says:

    It would be great, if EV prices (both new and used) declined.

    IMO, simply not charging VAT (or only a few % – normal rate is around 21%) would be a good way to do it.

    1. Mikael says:

      Reduce the VAT would decrease the income to the state, so that is not a good idea.

      Better with a tax on non-EV cars, or a combination of tax increase and tax reduction.

  2. SparkEV says:

    Might? “some consumers could delay purchase decisions this year.” I feel bad for BMW. 🙁

  3. pjwood1 says:

    The US $7,500 Fed tax-credit hasn’t amounted to much more than this, since inception. That makes this prospect especially hard to believe.

  4. Ian says:

    Take that money and replace all govt veh with electric vehicles. The money saved from fuel contracts would benifit tax payers and show attempts for lower carbon footprint. Quit giving away money. Sell EV’s with no sales tax. Offer 0% financing for EV’s. No incentives would than be required because savings would be more than the incentives would be, also eliminating the need for an expensive beurocracy saving taxpayers more money. All the tax money that would have been spent on the car will be absorbed at restaurants that have charging stations in the next few years.( the waitresses tip will be more than you pay for charging your car)
    Legislate the requirement for level 2 or higher charging stations at autobahn rest/fuel stops to eliminate range anxiety or charge uncertainty. When the govt owned electric vehicles reach the point where they are sold off and replaced with new vehicles the used vehicles (sold at auction usually) will be a good used vehicle for someone replacing an ICE vehicle increasing EV adoption. Just a thought.

  5. Paul says:

    Giving away money with each car won’t have much effect as long as the infrastructure isn’t there.

    Lately I took a longer distance trip (France, Italy) in my EV with a friend. He has come with me more often and likes the car side of the electric mobility proposition as much as I do. He has accepted that my car is better and a much greater pleasure to drive then his, while they cost the same over the three years we intend to keep them.

    But he would not buy one. And an incentive of 5000 euros wouldn’t change that (in fact, France has an incentive of min. 6300 and max. 10.000 euros). Because he experiences, during the trips with me, how bad the infrastructure is. We visited 8 chargers on our trip. Two had disappeared, although they were indicated on the website of the owner. Two were not functioning at all. Two did, but the first produced an error permanently and the second was not accepting its charge card. Only 2 did work as they should and made our trip possible, but for a large part we had to drive 70 km/h to be able to make it.

    He says I’m a kind of diehard EV enthusiast and accept that kind of nuisances, but he never would.

    So offering money with the cars doesn’t push the event of electric mobility, because the people who buy would have done that anyway (but thanks, France, for my 10.000 euros).

    So I propose Germany not to take the road of France but to invest this 2 billion euros in stimulating the construction of the infrastructure.

    But don’t do it yourself! The country, states, provinces and cities shouldn’t built the infrastructure themselves. That is what (partly) happens in France and is the reason why so many chargers don’t work (no true responsibility other than a picture in the local newspaper and the green image for the local politician at the opening day of the charger). Let the infrastructure be built by for-profit-companies and help THEM, eventually with money, but certainly with simplifying the paperwork and making the playing field attractive with laws and rules, like requiring apartment block owners to allow chargers in the garage for people who own an EV.

    And, in full agreement with Ian: use some of the 2 billion to give a good example and lease EVs for your own (local) government workforce.

    1. PVH says:

      This EV charge station reliability issue could probably be improved if an “human being” nearby would have an incentive to keep it in good working order. That human being could be a fuel station manager. Incentive could be attracting customers to his shop (restaurant) and selling Kwh’s. I do not know if that is a good idea but I know that fuel pumps are always in good working order so at least their system is good. It has to benefit someone. If its just built for the sake of making a “green” statement, then indeed best is that it doesn’t work, it saves maintenance and Kwh’s. Probably the reason why for 8 that exist on paper actually 2 are of any use. Long long way to go still. The problem with EV’s is that greenish aspect around (or “bobo” in French, for “bourgeois bohême”).

  6. Chris O says:

    Some back of napkin calculations indicate that it might only cost as little as €40 million to plaster all the German Autobahns with 150KW quick chargers every 50KM.

    Throw in another €100 million or so to make them free to use for a long time and Germany could offer its citizens a compelling deal to make the switch at a fraction of that €2.2 billion budget.

  7. If laws existed or were created, that had every retail commercial business with 20 parking spots or more, had a tax credit for installing 1 L2 charging station per 20 parking spaces, and for larger businesses – 1 DC QC of at least 20 kW per 100 parking spaces additional to the first requirment above, and also offered a tax credit, the number of charging spots would be very suffient for local needs.

    Freeways should also have 50 kW and 100 kW DC QC’s at each Service Centre, and/or 30 mile/50 Km intervals. With a minimum of 2 units at each site and up to 8 units at busy sites, expandable to 16.

    Employers should be encuraged to have at least 5% of their parking spots for employees set up for workplace charging, and to begin an exoansion program at a rate of 4-5% of their parking spaces per year.

    How to encourage them? Tax credits; competitions with awards; Print, Radio, and TV news stories; ISO 14000 Environmental Certifications; Credits for putting in Solar PV to match EVSE installations, and there are probabky more and better ideas!

    These same workplace ideas could be expanded to Condo and Apartment buildings.