An incentive package for plug-in electric cars in Germany was approved on Wednesday by the government.
Whether it will be enough to achieve 1 million EVs by 2020 (from over 50,000 today) remains a question. Over €1 billion is planned for incentives, but that amount will not even last for 500,000 cars.
So most likely the program will need to "double up" at some point if it is received at a pace congruent to German plans.
Consumers in Germany can count on:
- 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
€300 million will also be spent on the charging infrastructure (mostly DC fast chargers).
Nissan already saw growing interest in EVs, so we expect a huge jump in EV sales - Germany could even become largest European market by volume of sales. Because the program only kicks off now in late May, first results on the ground will likely not be seen until June's sales are known.
In order to hit 1 million EVs on the road by the end of 2020, just over 17,000 plug-ins would have to be sold per month in Germany, or roughly 7x over the recent monthly results.
Source: Automotive News