Germany will extend its enviromental subsidy for electric cars until 2025. A source informed, a day ahead of a German auto industry summit in Berlin.
- The existing tax incentive scheme – often referred as an environmental bonus (Umweltbonus genannt) is supposed to end by 31-12-2020. However, the German federal government has proposed to extend the benefit program up to end of year 2025.
- The new proposal also embraces to increase the Umweltbonus genannt by up to 50%.
- Full electric cars (BEV, as well fuel celled vehicles), and plug-in hybrid vehicles (PHEV) that emits less than 50 grams of CO2 /kilometer qualify for the new environmental benefit/tax incentive scheme of Germany.
In June, Germany doubled incentives for electric cars, which comprised of a 3,000 euro bonus for electric and a 2,250 bonus for hybrids costing below 40,000 euros.
The increased bonus will now be extended beyond 2021, but lowered in two steps until 2025, the sources said. The extra bonus for hybrids could be scrapped altogether from 2022.
For customers, the government environmental bonus can be topped up with a 3,000 euros manufacturer stipend.
Germany’s economics ministry declined to comment on the details but a spokeswoman said Economics Minister Peter Altmaier had advocated extending the subsidies.
A scrappage scheme for older diesel trucks will also likely be approved, at the automotive summit in Berlin, the sources said.
Electric cars made up 1.8% of new passenger car registrations in Germany in 2019.
