Germany Announces 1.2 Billion Euros Worth Of EV Incentives, Up To 4000€ Per Car

2 years ago by Jay Cole 32

Germany Takes The Wraps Off Plug-In Incentive Program

Germany Takes The Wraps Off New 4000€ Plug-In Incentive Program (Nissan also has announced an additional 1000 euro rebate on top of new German program)

After one of the most protracted debates on how to reach the Germany’s target of 1 million plug-in vehicles on the road by 2020, a deal is now in place.  A new incentive program arrives in May that potentially is worth about 1.2 billion euros (~$1.35 billion USD).

The source of the delay for the program had been centered around having a joint agreement with automakers to share in the burden of the cost. In the end, the government won out, as the program does indeed see funding split between the government and the participating automakers equally.

Transport Minister Alexander Dobrindt announced the plan Wednesday, stating that up to 400,000 new electric car sales (the cap on the program) might be made as a result of the decision.  To date, about 50,000 plug-ins have been sold.

Plug-in electric car registrations in Germany – March 2016

Plug-in electric car registrations in Germany – March 2016

A new EV purchase will now come with a 4000€ ($4,500 USD) rebate on an all-electric vehicle, while a plug-in hybrid buy will net 3000€ off($3,400 USD).

A MSRP eligibility cap has also been set at 60.000€ ($67,500USD).  Meaning that, at least for now, Tesla is shutout until the Model 3’s arrival in Europe, which is expected in late 2017 (assuming of course Tesla decides to participate in the program at all that is).

About 1 In 10 Plug-Ins Sold In Germany This Year Have Been The Renault ZOE

About 1 In 10 Plug-Ins Sold In Germany This Year Have Been The Renault ZOE

All German automakers have signed on already (BMW, Daimler, Volkswagen) as well as several other OEMs including Nissan-Renault – who currently account for the top two plug-in sellers this year  (#1 Renault ZOE, #2 Nissan LEAF…the Model S is number 6).

Nissan apparently would like the incentive to be even a little deeper, and has offered a bonus 1000€ euro rebate on top of the 4000€ program for its all-electric LEAF and e-NV200 van.

Originally, the German OEMs participating in the discussion with the government offered to share 25% of the burden, but in the end agreed to cover half the incentive.  In other, unrelated news, all OEMs have just raised plug-in pricing by 1750€ to 2000€. 

“With this, I believe we will be able to give a boost to quickly move the number of vehicle (sales) to a considerable level,” Finance Minister Wolfgang Schaeuble.   “The goal is to move forward as quickly as possible on electric vehicles…with this, we are giving an impetus.”

Separately, the deal also includes a 300 million euro provision to install 15,000 new charging stations in the country between 2017 and 2020.  Of that 300 million euros, 200 of it is ear-marked for quick charging infrastructure.

Faz.net, Hat tip to Marek G!

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32 responses to "Germany Announces 1.2 Billion Euros Worth Of EV Incentives, Up To 4000€ Per Car"

  1. EV says:

    60.000 e is the net MSRP price.
    And the other manufactures will sure participate because Renault and some times Nissan give “5.000 € electric Bonus” since one year in Germany.

  2. Alex says:

    Nissan press release:
    http://www.newsroom.nissan-europe.com/de/de-de/Media/Media.aspx?mediaid=144920

    They participate, and raise to 5000 € Bonus!

    GO Renault-Nissan!

    1. Jay Cole says:

      Hot off the press, will add in a note about Nissan’s involvement/bonus cash.

      /thanks Alex!

    2. EV says:

      I want to see the face from the German automakers. What Nissan raise the bonus? 🙂
      Hopefully Renault will also do so.

  3. koz says:

    The max price conveniently set to screw Tesl…ummm…benefit the common man

    Replace a 20ish mpg car with a Model S goes a lot farther to reaching the benefits of EV switch than replacing a 40ish mpg car that this rule in affect supports since those are the cars in this price range. US fed gov should take note of what happened here and figure out a “fair” way to reciprocate.

    1. pjwood1 says:

      Love or hate Trump, he would reciprocate with our German protectionist friends.

    2. Braben says:

      It also affects high-end plugins by the German brands, such as the Porsche Panamera plugin.

      1. Michael Will says:

        The tragedy is it affects the only long distance range fully electric car on the market

        1. Braben says:

          I don’t like government subsidies in general, but for sure they should not benefit wealthy people who can afford $80K+ cars. The Model 3 will get the rebate, so I really don’t see a reason to come up with conspiracy theories.

          1. Get Real says:

            I don’t think that Tesla will choose to participate because they (like all the other participants) will be forced to pay for half of the discount and Tesla is already trying to sell the Model 3 for as low a price as possible.

            I think this bill was cleverly crafted this way to deter Tesla from participating because the German auto industry knows just how disruptive Tesla has proven to be against their own laggard OEMs.

            1. Braben says:

              You don’t seem to understand how this subsidy works. Tesla can simply bake their share into the price of the car, and the end-price will still be 2000 EUR cheaper than their original price.

              If, like you say, everybody has to play by the same rules, then how exactly does that put Tesla at a disadvantage?

              The conspiracy theories are really getting ridiculous. Nobody is out to punish poor little Tesla. If Germany wanted to give the German auto industry an unfair advantage, they’d certainly not put a measure in place that puts expensive luxury cars at a disadvantage.

              1. Get Real says:

                Yes I know how this incentive works, but maybe I wasn’t clear on the rest.

                This incentive punishes Tesla right now because both of their current models do not qualify.

                What I was trying to say regarding Tesla participation in this incentive is that it may run counter to Tesla’s stated goal of making the Model 3 affordable when they will be forced to raise its price in order to cover the ridiculous requirement that the seller cover 1/2 of the incentive.

                Yes I realize that with the incentive it will cost 2000 Euro less but the government sleight of hand makes the incentive worth less then it really is and makes EVs look even more costly then they are.

                Also, whos to say that by the time Model 3s are starting to be delivered that the German government doesn’t adjust the maximum down so it doesn’t qualify?

        2. EV says:

          Its repulsive that so many Tesla fanboys want incentives. But in my live I meet so much rich people and unfortunately most “the richer the more stingy”. The limit in Germany with 60.000 € is much to high, it should be 35.000 €.

          1. Will Davis says:

            Fanboy. Fangirl. Oh, this crap is becoming so childish. Grow up. Life isn’t black and white.

            1. EV says:

              Childish? I think some Tesla drivers crying “Elon Musk help us, when I buy a 100.000 € Model S or 130.000 € Model X don’t get the 4.000 € incentives from government. I am so poor, perhaps I should sell my BMW Alpine or cadge every charge at a Nissan Chademo while eating by McDonald :-).

      2. Get Real says:

        Which sell in low numbers.

    3. Mikael says:

      Sure, because there are no German EVs getting cut off either. Oh, wait, there actually are a few above that level.

      Maybe it could just be that there is no need to give money to the richest in society, they can afford the car anyway.

      1. James says:

        Not true!!!

        Let’s say that I can just afford a 56,000 euro car, due to the fuel savings, etc… and a large dose of self delusion, but can’t stretch to a 60,000 euro car. Well in that case I can’t get a Tesla (all electric). So what are my alternatives? Oh yes that’s right, they are all gas guzzlers. Incentives should be there to help promote EVs versus Petrol/Diesel, not help poor versus rich people. The EV debate just isn’t about that, it is about trying to move us ALL to a sustainable transport future.

        On a side note, the more rich people buy Teslas, the more will be available on the second hand market in a few years time for the rest of us.

        1. Braben says:

          You act like the subsidy is mana raining from the heavens. But it’s paid for by us (the tax payers). It should be used where it’s most effective, and a few thousands Euros are unlikely to have much effect on the decisions of people who can afford a Model S.

  4. Kdawg says:

    Won’t they just raise the price of the car by the rebate amount now?

    1. sveno says:

      Yeah, I also don’t get this part. The whole point of governement rebates used to be cut the taxes or pay a part of the price.

  5. Benz says:

    So, if a German citizen buys a Kia Soul EV, will he then also get the 4,000.- euro rebate?

    Will those 4,000.- euro then be paid by the German government, or will they only pay half of that amount? And, if that is the case, who will then pay the other half, Kia or the German car makers (BMW, Daimler, Volkswagen)?

    1. Alex says:

      Until now Kia did best to not sell the Soul EV. In France with incentives you pay 35k € for a Soul, in Germany wihtout you pay 30k €. If Kia participate they will raise the price to 33-34k € I bet.

    2. Alex says:

      Kia would first have to join the group of supporting automakers (= paying their share of the subsidy). Else no rebate anyway…

      1. Benz says:

        OK, that would be fair, I guess.

  6. Benz says:

    We should soon see increasing sales figures of EV’s an Plug-In Hybrids in Germany. And that would be great.

  7. Benz says:

    How soon will the Opel Ampera-E become available in Germany?

    2017 or 2018?

  8. Benz says:

    Which EV model will get the highest annual sales numbers as a result of this incentives program in Germany in 2016/2017/2018/2019?

    Nissan Leaf, Renault Zoë, VW E-Golf, Audi A3 E-Tron, Mitsubishi Outlander PHEV, etc.?

  9. Bone says:

    I assume that upcoming long range german BEVs will be priced in 50-60 k€ range in Germany.

  10. PVH says:

    This may mean that the base price of the coming Audi Q8 EV will be at or below EUR60K. Local automotive industry is always listened to when designing such incentives.

  11. wavelet says:

    I don’t get it.
    Can someone five the actual details of the program? The proposal I saw originally called for a pool partially paid for by all manufacturers and partially by the government, so ICE sales would partially subsidize EVs.(*)

    Is this what ended up being agreed on? Because if not, and the carmakers have to directly subsidize half the cost on a per-car basis, the actual effective incentive is half the nominal numbers (2000/1500 Euros), since the carmakers will end up having to raise the price by that amount.

    (*)Also, the proposal I read would have set aside about a third of the overall budget for charging infrstructure rather than cars, which IMO makes a lot of sense.

  12. Joe says:

    I don’g get it that everyone is hooked on the stupid sales incentive.

    The big deal here, and clearly the elephant in the room vis-á-vis other countries is the infrastructure investment.
    The German government just promised to invest €300mio into charching infrastructure, €200mio of which will go into DCFC.
    At current prices of about €50k per piece that gives you roughly 4,000 chargers!
    Please remind me if any other country is currently putting this many DCFC chargers out in public!? And then adding to that will be the 600 already projected DCFCs of the http://www.slam-projekt.de Given that several chargers will be combined in one spot (which lowers per piece costs) we are realistically looking at about 5000 DCFCs at at least 700-100 locations in the country. And there are only 13,000 km of Autobahn to cover. That leaves plenty DCFCs for places outside.

    Just compare this to Tesla: Currently 3652 superchargers in 617 locations (status 2016-04-29). This gives you an idea of how great the charging infrastructure will be in Germany in 2019. And the remaining €100mio will go into destination chargers. These are substantially cheaper. Let’s just say €1000 for public installation (Tesla sells Wallboxes for €500), then that’d make 100,000 destination chargers available. Not bad I’d say.
    Even if we take just 50% of the values calculated here as a cautionary lower expectation when it comes to government projects, this is still way out there to be the best infrastructure at present (well, 2019, to be precise).
    Time to step up the game! This can serve as a good model for other countries, I think.