According to the ministry’s proposals, the subsidy of up to 4,500 euros ($4,874) for a plug-in hybrid would be scrapped and the subsidy for electric cars would fall to 4,000 euros next year, from 6,000 euros currently. and would fall to 3,000 euros for 2024 and 2025, the person said.
The ruling coalition had agreed in its plan that the government would from next year only support hybrid cars deemed to have “a positive impact on the climate” and would end subsidies altogether by the end of 2025.
“We want to refine our support for electric cars and focus more on climate protection,” said Economy Minister Robert Habeck, a member of the Greens party, as quoted by the Funke media group. “In our view, plug-in hybrids are marketable and no longer need public funding.”
Industry rejection
The industry balked at the planned aid cuts. Ending subsidies for plug-in hybrids early “would jeopardize the rise of electric mobility and ignore the realities of consumers in Germany,” said Hildegard Mueller, who heads car manufacturing lobby VDA, on Thursday. “Plug-in hybrids serve as pioneers for the transition to electric mobility.”
Mueller also complained that the aid is tied to the delivery date of the vehicles, which creates uncertainty about the final bill for buyers, as they often have to wait several months for their car due to chain problems. ‘supply.
The Greens-controlled ministry’s proposals have also caused pushback from one of the party’s partners in government, the business-friendly Free Democrats.
The ruling coalition is unlikely to deviate from its initial subsidy plan, as plug-in hybrids also help meet climate goals, said Bernd Reuther, transport policy spokesman for the FDP.
“We need to make the transition to these vehicles as attractive as possible and subsidize them accordingly,” Reuther said, as quoted by the Rhine post newspaper
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