Since June 2020, anyone who buys a new electric car has received up to 6,000 euros back from the German state, plus an environmental bonus of 2,250 euros plus an innovation bonus of 2,250 for plug-in hybrids . The new traffic light coalition has extended this regulation from the former government’s Corona stimulus plan until the end of 2022 to eliminate market uncertainty. But it is now returning with momentum, as many electric cars, including variants of the popular Tesla Model 3, will no longer ship this year, according to the automaker. And as the Federal Ministry of Economics announced on Thursday, funding should actually become more selective and less generous from 2023.
No environmental bonus for plug-in hybrids
The Federal Ministry of Economics had already announced that a new regulation would come when the old environmental bonus was extended at the end of 2021, and had also clarified that the rules for plug-in hybrids in particular should be stricter. On Thursday, a ministry project for the new electric car bonus passed through departmental coordination within the government, reports the FAZ among others. After that, from 2023, there would be a complete end to purchase subsidies for part-time electric cars, and there would be fewer subsidies for pure cars, and up to a lower price limit.
Regarding plug-in hybrids, the coalition had previously agreed that future funding would be contingent on proof of a certain percentage of electric usage. According to the FAZ report, the Ministry of Green Economy apparently did not consider this feasible, which is why they should no longer receive an environmental bonus. Plug-in hybrids are now “marketable” and no longer require public funding, Economy Minister Robert Habeck confirmed in an interview. In the evening, the same wording appeared in an updated page on electromobility, which his ministry referred to on Twitter.
We are revising the promotion of electric cars from 2023 for more #Climate protection. In future, the total gross price of the vehicle must be subsidized with the same subsidy ceiling; in this way, financing becomes socially more balanced. #electromobility Planned innovations: https://t.co/Zp050cj2Wi pic.twitter.com/Mij2Gio3Rr
— Federal Ministry for Economic Affairs and Climate Protection (@BMWK) April 14, 2022
The reasoning is interesting – plug-in hybrids shouldn’t be excluded from funding because of their lower climate footprint, but because they simply don’t need them anymore. Automakers except Tesla and other pure electric car suppliers like Polestar or smart are likely to use the departmental vote to shake it up. Because even if they could sell half of their electric cars without subsidies, they would be reluctant to completely do without a further increase in demand.
Buyers of purely electric cars, and therefore indirectly their manufacturers, will also have to adapt to the reduction in German subsidies. In the coming year, instead of the current 6,000 euros, it should rise to only 4,000 euros – still more than before the former government doubled the environmental premium through the energy premium. ‘innovation. However, Habeck’s project now envisages a stricter price limit: below 65,000 euros of the actual purchase price, including extras, there should always be state money, above no more. Until now, this limit was clear and only concerned the base price, regardless of the individual equipment. After 4,000 euros next year, the electric car subsidy, if paid, should be further reduced by 3,000 euros for 2024 and 2025 before stopping completely.
Longer life for electric cars
According to the ministry, the draft also provides for the minimum holding period prescribed for the environmental bonus to be extended from six months to a full year. This should be largely uncontroversial and has been leaked before, as it helps counter the now-widespread practice of buying subsidized electric cars and selling them for almost new or more as soon as the six months are up.
At least Habeck’s ministry does not want to respond to a wish already expressed by the industry: the date of approval should continue to be decisive for funding, and not the date of the order, as required, a- he explained. The second variant would have created more security for customers given the already long delivery times, but according to the minister, there was too much potential for abuse. Instead, according to a report by Tagesspiegel, he suggested that manufacturers accept differences resulting from their long delivery times. On the other hand, Tesla, along with the old auto industry, should defend itself tooth and nail in case of doubt.