Germany Launched New EV Incentives July 2 – Let The Sales Begin!

JUL 7 2016 BY MARK KANE 26

ZOE gains speed in Germany

Plug-ins sales gains speed in Germany

Renault is a partner of the European fast-charging project Fast-E in Germany

Renault is a partner of the European fast-charging project Fast-E in Germany

Germany finally launched the incentives to buy plug-in electric cars, which was first announced in late April.

Let the sales…begin!

Incentives went on-line on July 2, but with thankfully the government as also made them retroactive from May 18 for those who purchased in the meantime, so those consumers will now only need to fill out the proper paperwork.

Incentives includes (details):

  • subsidy of €4,000 for all-electric cars and €3,000 for plug-in hybrids
  • exemption from paying vehicle tax for ten years (previously five years)
  • reduced tax rate of 25 percent on electricity for charging electric cars at work by employees

A list of eligible vehicles for the program can be found here.  Eligibility for the incentive is capped at 60,000 €.

As everything has now become clear, this summer we should finally see much higher sales growth return in Germany, as the recent “transitional period” definitely had a negative impact over the past couple months.

Plug-in electric car registrations in Germany – Through May 2016

Plug-in electric car registrations in Germany – Through May 2016

Although with the EV incentive’s effect on the vehicle’s themselves, the charging infrastructure is now starting to improve fast, with huge projects like latest Fast-E – 241 multi-standard DC fast chargers.

source: AFP via CCFA, hat tip to tftf

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26 Comments on "Germany Launched New EV Incentives July 2 – Let The Sales Begin!"

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Worth mentioning: Capped and only for new cars at < EUR 60k list price, i.e. Porsche and Tesla drivers can't apply.

PS: List of eligible vehicles as of July 4, 2016.

List will be updated as new cars are released.

Hey tftf,

Both good points…will add into the story! /thanks

Even with a cap at 70000 € a model S would not be possible because the bare Model S 60 start at 77000 € (85470$).
The Model S will likely be within 60000 € (66600$).

The cap is pre taxation. The model S 60 is 64.300€ pre tax. So its pretty close…

Could Tesla take something out of its German cars and then enable it after the sale, to allow lower end cars to slide under the cap?

For example, Tesla can sell their 60s and 75s as a 40kwh car without Supercharging and with a crippled range, then enable the full range later with a payment. A few options might be disabled and then magically enabled later. It would also reduce the VAT tax. 🙂

Curious. What about a Model 3? Will it be elgible since it will cost less?

This cap is interesting – and I think similar cap will be in place in the US if & when the federal tax credit is extended. Already states have started capping for various benefits.

This is a good – since haters will have one less thing to crib about.

Tesla should sell S60 for 59,990€ in Germany 🙂 Just to piss them off if not anything else.

They could add the option to rent the battery like Nissan. That would lower the base price under 60k €.

Renting the German Tesla battery is an excellent idea. It would bring down the price at least $20K. Its not a “sale” and if its a leased vehicle anyways, both payments would be recombined back into one.

Politicians all over the world constantly try to tip the scales to help their buddies. They create special deals and later discover to their horror, everybody is using it. They make the mistake (like in the tax code) of doing a static analysis. This is why tax increases on stuff like yachts often collect far LESS tax after an increase in rates.

Too sad there are no proper cars to buy. Tesla is the only one.

Why make it retroactive? Clearly past sales were not motivated by the incentive so I see no reason to extend it to the past unless those buyers were somehow told there would be a retroactive incentive coming up before they decided to buy.

Retroactive only for about 45 days, back to mid-May 2016 (when the law change was already public).

Tesla is the only 100% green car company and will its customers will not benefit the deal. The subsidy seems to be in place to help German car makers… that is protectionnism.

No, I don’t see protecionism. For example, the same cap applies to Porsche’s PHEV models (all above the cap).

Neither Porsche nor Model S/X buyers need incentives from other tax payers in my opinion.

I personally think the cap could even be lower, say 40k or 50k EUR.

Tesla’s Model3 will be eligible for the German incentives, but it’s not available yet (that’s Tesla’s problem).

Very good. Did BMW launch their i3 with higher range.

Not yet, first shipments of BMW i3 cars with 94 Ah cells expected around August/September 2016 in Europe.

Longer-term, Samsung is already working on 120 Ah cells for future BMW models.

This is a very good sign. The main problem, however, remains lack of charging infrastructure at home. A large proportion live in rented apartments. I was looking at new build developments to buy an apartment recently. Despite completion in 2018, none committed to providing a suitable socket in the underground parking garage. They are trying to sell me a parking space for 25K EUR, I would pay another 500 or 1000 to have a suitable socket. It’s much more difficult to build this infrastructure post completion.

Until there is a solution for charging at home for apartment dwellers, electric cars remain. At home.

Aside from that, a Golf 1.4 TSI is about 10K cheaper than a GTE or E. If VW wants to sell some electric cars, the price needs to be the same or cheaper. I would say VW has some incentive to sell electric cars to meet its Co2 targets. I’m not seeing any evidence of VW (or any other German manufacturer) making any real effort in this direction.

Should be: “Until there is a solution for charging at home for apartment dwellers, electric cars will not seriously take off in Germany”.

“reduced tax rate of 25 percent on electricity for charging electric cars at work by employees”

should Really help the street/apartment dweller scenario, yes? Brilliant idea of charge at Work, rather than home, during the day so possibly solar comes into play. Might even work to offset a company’s CO2 numbers.

I can dream..

1) When you compare the prices of ICE and electric cars you should include also the fuel, maintenance and usually higher tax costs of IEC cars.
2) There is a very strong trend in Europe to turn most dense large cities (where those apartment dwellers live) into car-lite or even car-free places.
3) A 200-250 mile EV has easily a week’s worth of city driving on a single charge.

i thought tesla’s plan to release 60 is just that. get a base car for less than 60k euro. get the incentives. then pay additional money to unlock the range to 75.

” < EUR 60k list price, i.e. Porsche and Tesla drivers can't apply."

I'm guessing we'll get a lot of BMW and Mercedes PHEVs just under that limit.

Unfortunately, the call premium has been used in Germany within 4 days only from 266 applicants :

http://www.mein-elektroauto.com/2016/07/bisher-wurden-nur-266-antraege-fuer-die-kaufpraemie-fuer-elektroautos-gestellt/20814/

Incentives also apply to hydrogen fuel-cell vehicles and certain plug-in hybrids.