Electromobility in Germany Buyer’s Premiums for Electric Cars Slow in Demand
Editor: Janina Seit
After about one and a half years, only about ten percent of the subsidies available for the electric car premium have been used up. It is unlikely that the pot will be empty until the intended end of the subsidy in mid-2019.
The demand for the government premium offered for the purchase of electric cars is generally very low, even though demand has risen significantly in recent months.
The demand for the government premium offered for the purchase of electric cars is generally very low, even though demand has risen significantly in recent months. In the eighteen months since the introduction of the premium, only slightly more than ten percent of the total amount have been applied for, reports the newspaper Welt.
The market share of electric cars is increasing, but still quite slowly.
The newspaper refers to figures published by the Federal Office of Economics and Export Control (Bafa). Accordingly, 46,897 subsidy applications for the purchase of an electric car have been submitted so far. A total of € 600 million is available in this fund. To date, some € 65 million have been granted," Bafa President Andreas Obersteller told the newspaper.
Subsidies Might Not Be Used Up
The Federal Government is funding the purchase of a battery car or fuel cell vehicle with € 2,000. Plug-in hybrids are subsidized with € 1,500. Manufacturers of the vehicle must contribute at least the same amount in the form of a discount in order for the subsidy to be granted. The subsidies are sufficient for more than 300,000 vehicles.
“At present, there is reason to believe that the funds won’t be used up by the end of funding period in mid-2019," said Obersteller. The Bafa President therefore suggested that the money should be used elsewhere to promote electromobility: "The new Federal Government could reallocate part of the budget and make it available for the promotion of a private charging infrastructure. This support could be granted, for example, to craftsmen, hotels or housing estates."
Sluggish Demand for Electric Cars
Recently, however, Bafa recorded a steadily rising demand for purchasing premiums. The funding program, started in the summer of 2016 with around one hundred applications per day, now the figure has tripled to 300. According to Bafa figures, 24,500 applications were submitted by companies and about21,600 by private customers. Government institutions remained hesitant: Only 346 municipal enterprises and special-purpose associations applied for the premium.
The reason for the sluggishly demand for electric cars is the insufficient network of charging stations. Since the vehicles have relatively short ranges, many car buyers are skeptical. The German government has already distanced itself from its ambitious goal of bringing one million electric cars onto German roads by 2020.
Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.
Consent to the use of data for promotional purposes
I consent to NürnbergMesse GmbH, Exhibition Centre, 90471 Nuremberg, including any affiliated companies according to §§ 15 et seq. AktG (hereafter: NürnbergMesse) and Vogel Communication Group GmbH & Co. KG, Max-Planckstr. 7-9, 97082 Würzburg, including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. I have accessed lists of the respective companies here for Vogel Communications Group
Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.
In case I access protected data on Internet portals of NürnbergMesse including any affiliated companies according to §§ 15 et seq. AktG or Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access of such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here.
Right of revocation
I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. To declare my revocation I must use this contact form. In case I no longer wish to receive certain newsletters I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the privacy policy, section editorial newsletter.