Germany Considers ‎€5000 Incentive To Aid In EV Sales

JAN 30 2016 BY JAY COLE 30

Sales of electric cars in Germany aren’t great.  In fact, they are outright depressing…and that is even counting the bogus plug-in sales being registered in the country late in 2015 in an effort to skirt EU emission regulations before being re-sold elsewhere.

Plug-in electric car registrations in Germany Through 2015 (Assisted In The Last 4 Months By Kia Soule EV)

Plug-in electric car registrations in Germany Through 2015.  Assisted In The Last 3 Months By A Sudden ~2,400 Phantom (we assume) Kia Soul EV Registrations

At one point, the country had a goal of having 1 million EVs on the road by 2020 (and we suppose it still does officially).

As it stands at the end of 2015, only about 50,000 plug-ins have been sold (~24,000 in 2015), a quarter of the planned amount by this point in time.

In an effort to change its EV fortunes, the government in Germany has long threatened to bring in incentives in the past, but up until now, nothing of significance has materialized.   That may change soon enough.

On Friday, a senior ally of German Chancellor Angela Merkel said that politicians and auto executives will now sit down with the Chancellor directly and discuss incentives of up to 5,000 euros ($5,400 USD) on new plug-in purchases to kick-start the segment.

“The heads of the three parties in Merkel’s ruling coalition have weighed introducing a subsidy for electric car buyers, said Horst Seehofer, head of the Christian Social Union (CSU), sister party of Merkel’s Christian Democratic Union (CDU).” reported Reuters Friday.

Past The Rather Suspect 3,839 Kia Soul EV Registrations In Germany, The BMW i3 Finished "Second" With 2,271 Sales

Past The Rather Suspect 3,839 Kia Soul EV Registrations In Germany, The BMW i3 Finished “Second” With 2,271 Sales

As always, the German government is there to once again throw a potential wrench the program, as Mr. Seehofer says that Germany is “looking into” having the car company’s themselves co-finance the new incentives.  Those kickbacks will be one of the central issues Chancellor Merkel will discuss with auto execs next week. Viel Glück” with that one.

No figures on how much the automakers might be asked to contribute, but Der Spiegel (German weekly magazine) suggested a figure of 1,500 to 2,000 euros per incentive is being tossed around.

When asked for comment, a Economy Ministry spokeswoman said Friday on the potential for incentives.

“Talks within the German government are constructive. We are counting on arriving at a good solution to help achieve our goals”

So, will this time, be the time Germany gets serious about EV incentives?  Or will the can get kicked down the road once again?

Yahoo! Hat tip to Dag J!

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30 Comments on "Germany Considers ‎€5000 Incentive To Aid In EV Sales"

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notting

There’s already a tax discount for companys buying BEV or hybrid. And free annual car tax for 10 years if first time registered in the last few years (from January 1st, 2016 to December 31st, 2020 only 5 years, but all BEV get a 50% discount there no matter when first time registered).

notting

Alaa

I agree with Mr. Seehofer that says
‘that Germany is “looking into” having the car company’s themselves co-finance the new incentives.”

Simply because Qatar owns a big chunk of VW etc.
Just look at this
http://www.volkswagenag.com/content/vwcorp/content/en/investor_relations/share/Shareholder_Structure.html

So is it logical that Qatar will pay money so that it earns less! IMPOSSIBLE So this Mr. Seehofer is trying to stop the advent of electric cars in Germany. And now you are asking yourself why do I agree with him, well I don’t I just wanted to illustrate that his interest is in keeping his job and the income he gets from Qatar. So he will sell the future of his climate and the health of his kids just to have more money from the Arabs!

andre

we just start to understand -modern- Germany……(VW,…….dirty coal,and other scandals…media coverups….etc.)

Mister G

The world needs to see permanent sea level rise in major coastal cities to increase demand for BEVs.

Pushmi-Pullyu

The article says:

“Mr. Seehofer says that Germany is ‘looking into’ having the car company’s themselves co-finance the new incentives…

“No figures on how much the automakers might be asked to contribute, but Der Spiegel (German weekly magazine) suggested a figure of 1,500 to 2,000 euros per incentive is being tossed around.”

This is absolutely insane. The purpose of government incentives for EVs is to encourage auto makers to develop EV powertrains, and to put EVs into production even during this “early adopter” stage of the tech, when they’re too expensive to fully compete with gasmobiles.

Requiring the auto maker to pay for part of the incentive… means that part of it is no longer an incentive.

DUH!

Alaa

Man the Arabs own VW etc.

Rich

Asking the automotive companies to pay a portion of the rebate is a total PR move. The auto companies will simply raise the price by the amount of the rebate they have to contribute. This will cost the auto companies nothing and create the illusion that they’re helping. The propaganda is astounding.

Jernej

You guys are completely irrational about Germany. Their CO2 emissions are dropping pretty fast. You can thank Japanese and their incompetent nuclear energy for the temporary increase in coal use.

andre

and the 10-12 Million VW,Audi…..”clean” Diesels…..was caused by the polish coal lobby?…..

Jernej

That’s got nothing to do with climate change. It’s air quality issue. Pro diesel policies are not so much German policies, but are EU wide. German car companies cheated most i guess, that’s true. But dont think EU politicians were lobbied only by Germans.

Increased emissions compared to 2009 and barely 10% dropped in the last 15 years. And almost all of the change coming from the industries, barely nothing from the energy or transport sector.

comment image?itok=Au_jP64B

Not really a role model.

So far it’s been more about trying to look green while being as brown as possible in reality. Total greenwashing.

And what Japan has been doing is hardly relevant to what Germany is and should be doing. Japan needs it’s own discussion elsewhere but they are also one of the countries that, just like Germany, needs to step up their game and do some massive environmental improvements. A good start would be to start up as many of their idling nuclear plants as possible.

Mr. M

You left out a very important piece of information for my Teslarian friends. I shall quote from the Wall Street Journal:

“It’s a hard sell to Ms. Merkel’s conservative lawmakers. Several people familiar with the situation said her influential finance minister, Wolfgang Schäuble, vehemently opposes any move that would appear to be using taxpayer money to subsidize rich consumers of luxury cars… One compromise, the industry executive said, could be to exclude electric-battery and hybrid versions of big luxury cars… ‘It might be an option to limit the incentives to small cars,’ the executive said, adding that the discussion about cash incentives in still very fluid. ‘This is going to be very hard to get through Parliament.”

Now, before you starting talking about the “Model 3” I shall simply point out that Germany will be lucky to see that car by 2019 while: “I can imagine a cash incentive of 5,000 euros ($5,400) per car,’ he said, adding that the government should earmark about €2.5 billion in funding until 2020…”

Sell all new 100% Electric vehicles exempt from initial sales tax and compound that with a 0% financing for 84 month standard and you can eliminate the incentive. The savings will be more than the incentive and will eliminate the cost of any administrative costs to maintain a incentive program.

pjwood1

Can we even trust Merkel is a governing factor in German auto policy?

andre

most likely China,US,later India will decide the future,meanwhile europeans Willkomen to clean-green diesel rust…..inhalation therapy…..

Anybody

It would be very interesting to see just how many comments of fud you already posted. I mean they aren’t really adding anything to the discussion in my opinion. You seem to have a real anger problem with Europa. I for myself think that its impossible for Europe to adapt as fast to the current situation as other countries because of the giant car industrie/lobby here which has quiey some influence on our politics.

SJC

After PNGV made hybrids in the 90s, the U.S. car makers did nothing, Toyota and Honda made the hybrids. How could we give incentives for foreign autos, when our own car makers did nothing?

Rick Bronson

A country that replaces Nuclear power plants with Coal fired power plants are not going to encourage electric vehicles.

If they cut the Diesel subsidies, that will automatically encourage people to buy more Electric Vehicles.

Still the companies like BMW & Renault can build charging stations every where to encourage people to buy more EVs.

I’m confused by making the auto companies contribute toward an incentive. Wouldn’t be easier for them to just lower the MSRP? How will this work for imports to Germany? Will automakers have to raise their price when selling in Germany so they still make a profit after having to pay an incentive?

andre

the most disappointing to see in this so called green,and extremely rich country…..how few, really sincere “green”people are……the rest is show…..

wavelet

Jay,
Please reword the article to avoid the word “kickback” — the article is misusing the term, and causing confusion.
The accepted (and dictionary) meaning of a kickback is a
“a payment made to someone who has facilitated a transaction or appointment, esp. illicitly.”
Since there’s nothing like this involved in some people’s desire that automakers shoulder all/some of the cost, the term is inappropriate.

mr. M

I am against incentives in germany. The EU has laws (CO2 regulations) that will require ~20% marketshare for EVs soon (2022+). Regardless of incentives or not the OEMs need to fullfill these CO2 numbers. If they can’t fullfill these numbers, they will be paying huge fees.

If we introduce a incentive now the effect will be none, but the OEM make more money selling EVs.

Don’t help them what they need to anyway. They made enough money for long years.