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