Germany To Approve Huge Incentives For Corporate Purchase Of Electric Cars


Plug-in registrations in Germany – October 2014

Plug-in registrations in Germany – October 2014

The German electric car market soon could boom as the government is expected to approve a new incentives for corporate purchases of electric vehicles.

As we know, Germany set a target of at least one million electric vehicles on German roads by 2020 (in order to reduce CO2 emissions), but with 24,000 on the roads and averaging just over a thousand new sales a month, Germany will fall well short of obtaining this goal.

The plan is to cut tax on corporate cars:

“The government incentive plan calls for allowing companies to write off as much as 90% of the value of vehicles used for business purposes, said one person familiar with the matter. Corporate auto fleets account for about 60% of new-car sales in Germany.

The incentive is planned to take effect in January. Germany’s 16 federal states must also approve the measure because its implementation would result in lower taxes at the state level.”

There are other ideas on how to build the market for EVs:

“In a separate report presented to the government on Tuesday, the commission, which is called the National Platform for Electric Mobility, proposed a wide range of measures to boost electric-vehicle sales from tax incentives and expansion of public charging networks to increased support for research and development and creating a public-private partnership to develop battery cells.”

Source: The Wall Street Journal

Categories: General

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6 Comments on "Germany To Approve Huge Incentives For Corporate Purchase Of Electric Cars"

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Do it Germany. It is a great “F U” to Putin.

Not for private buyers. That is a shame.

Corporate sales can drive a lot of EV adoption, because companies tend to replace vehicles after a few years, so this might just create a steady stream of cheap used EVs for private buyers

The tax payer ist the stupid one. Only companys get tax payers money.

It also will put thousands of drivers in EV’s that probably wouldn’t have considered one. In Germany, like the US, once your work car is a few years old, you usually have the option to buy it fairly cheaply. If it gets EV’s on the roads in larger numbers, I’m all for it.

This has the potential to bring down EV component prices globally. While the biggest benefactor would likely be the German brands, American and Japanese OEMs could get a big boost off of this too, which should eventually run down to average consumers so long as the market remains competitive.