Applications for German government's e-car buyer's premium soar to record level

Automotive Industry

Source: Clean Energy Wire, 2020-08-04

The number of applications for Germany's e-car purchase premium reached a record level in July, the economy ministry said. With almost 20,000 applications for the buyers' bonus that grants up to €9,000 for new e-cars, interest in the purchase premium reached its highest level since its introduction in 2016. Since the beginning of 2020, roughly 70,000 have applied for the premium, an increase of nearly 80% compared to the previous year. The government increased the premium this spring as part of its recovery programme to induce economic activity after the coronavirus lockdown. "The premium is working," said economy minister Peter Altmaier. "The increased funding is giving our economy a further push at the right time and we hope that this will even increase in the autumn," he added. The premium will stay in effect until the end of 2021. Apart from purely electric cars, buyers can also benefit from a bonus on plug-in-hybrid cars, which is capped at €6,750.

As part of its national Climate Action Programme 2030, the German government aims to have 10m electric cars on the road by the end of the decade. While most of the country's carmakers have announced the release of a wide range of electric models, potential buyers are still often held back due to concerns over a lack of charging infrastructure and high prices for e-cars. However, as demand has started to go up over the course of the year, e-mobility could become an important pillar of the country's economic recovery after the coronavirus crisis, according to consultancy PwC.

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