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Germany increases purchase subsidy for electric cars by 25 to 50 percent

The German government is said to increase the purchase subsidy for buyers of electric cars and hybrid cars. Such a purchase subsidy has existed in Germany since 2017 and these amounts would be increased by a maximum of fifty percent from 2020.

A government document recognized by Reuters would state that there is a plan to grant German buyers higher subsidies in the period from 2020 to 2025 if they buy an electric car. Buyers of hybrid cars have already received a subsidy of 3000 euros and that is being increased to 4,500 euros in the new plans. AutoBild reports that the purchase subsidy for fully electrically powered cars that cost less than 40,000 euros is rising to 6,000 euros. That is currently 4000 euros. For electric cars that cost more than 40,000 euros, the subsidy increases by 25 percent.

With the increase in these subsidies, the German government wants to speed up the breakthrough of electromobility and also contribute to the goal of having 10 million electric vehicles on German roads by 2030. The new subsidies would come into effect from the beginning of next year, for which a pot of two billion euros would be available by 2023. So far, the situation is that half of the subsidy amounts are paid by the federal government and the other half by the car manufacturer. It is not clear whether this distribution will remain intact. Under the current scheme, the basic model of an electric car may not exceed 60,000 euros in order to qualify for the subsidy.

In the Netherlands there were reports in November last year that the Dutch government would come up with a subsidy of 6000 euros from 2021 , but the ANWB, among others, writes that a purchase subsidy in 2020 of between 3000 and 3500 euros is assumed, after which this will be until 2025 is being phased out. There would also be a stimulus of a total of 100 million euros for the second-hand market, in the form of, among other things, a charging credit, a purchase subsidy, a contribution to the construction of a charging device or a battery guarantee or battery lease.

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