Germany Takes Positive Step Towards Promoting Electric Vehicles as Company Cars

4 years ago by Eric Loveday 4

How Could This Print Shot Have Not Inspired Europeans?

How Could This Print Shot Have Not Inspired Europeans?

This move strikes us as a bit of an unusual way of promoting electric vehicle purchases, but at least it’s something, especially for Germany—a nation that doesn’t seem to show strong support for plug-in vehicles.

BMW is Specifically Targeting Corporate Fleets with its Upcoming i3

BMW is Specifically Targeting Corporate Fleets with its Upcoming i3

German legislators voted in some rather odd tax incentives for drivers of electric corporate vehicles.

What this means is that private individuals who drive company cars, electric ones, will no longer be penalized for doing so.

It’s all a bit tricky, so we’ll turn it over to Reuters, who explains it like this:

“The private use of a company car is treated as taxable income in Germany and measured at a flat monthly rate of 1 percent of the vehicle’s gross list price. So electric cars have been at a disadvantage since their price tag can be as much as double that of a car using a conventional combustion engine.”

“According to the new law, backdated to Jan. 1, private users can offset the list price with 500 euros per unit of battery size, expressed in kilowatt hours. The maximum offset is 10,000 euros, which would equate to a powerful 20 kWh battery.”

The head of Germany’s import brands, VDIK President Volker Lange. sees this slight change in the law as a positive step:

“Finally a long overdue step is taken to make the use of electric cars more attractive for commercial customers.”

Automakers, including BMW, see corporate customers as a target group for future electric vehicles, especially since this group represents nearly one third of all demand in Germany’s automotive market.

Germany doesn’t offer subsidies on the purchase of electric vehicles, but perhaps this slight alteration in the corporate vehicle law will drive up demand for EVs.

Source: Reuters

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4 responses to "Germany Takes Positive Step Towards Promoting Electric Vehicles as Company Cars"

  1. Kimmi says:

    Fiscal incentives – German Style.

    The next will be like this: Car owners named Wolfgang will have a 33% refund of their parking tickets on their IRS if they buy an electric car with a price above 30.000 euros. Only brands with a “W” or a “A” in their name are eligible, or alternatively, brands that have a three pointed star adorning the front of their cars.

    1. Assaf says:

      Haha, good one. You’ve read my mind.

      Bottom line, this is an extremely minor incentive. Something like “if you’ll be a good boy, I will take you to see how people eat ice cream.”

      Way to be bold, German politicians!

      I have a mild suspicion that since German automakers are way behind on EVs, the politicians are protecting them by not encouraging EV sales.

  2. kdawg says:

    In the picture the girl is wearing a mini-skirt and the guy has a huge scarf on.

    This ad annoys & angers me.

    🙂

  3. Martin T says:

    I think its some Europe aspirational futurist fashion scene???
    ah what ever ….
    Just sell more Opel Ampera’s – you guy’s have been slack!

    Now you have government grant.
    How about a new advert Opel and go get some sales !