E-cars: will there soon be no more subsidies?

E-cars: will there soon be no more subsidies?


from Claus Ludewig
In an interview with Welt am Sonntag, Federal Finance Minister Christian Lindner stated that every state subsidy would be put to the test. Lindner is in favor of abolishing the purchase premium for e-cars.

In order to reduce the cost of new electric cars, a number of car companies are working on different concepts. The aim is to be able to produce the battery more cheaply in order to be able to pass on these cost savings – proportionately – to the end customer. Around the year 2026, it is expected that the purchase prices for e-cars could fall by up to 40 percent. However, there are still more than three years to go. So far, the purchase of e-cars in Germany has been made attractively priced by means of a subsidy. Federal Finance Minister Christian Lindner (FDP) would like Completely abolish the e-car subsidy from 2023. The debt brake should be observed again, as Lindner reported to the world on Sunday.

Federal Finance Minister Lindner opposes the car manufacturers

Since the outbreak of the Covid 19 pandemic in Germany, there have been various state aid funds to provide financial support to companies that have had to accept a loss in sales due to lockdowns. After the Ukraine war has been raging since February 24, inflation has risen sharply. As a financial compensation, there is a relief package for the citizens, which includes, among other things, the 9-euro ticket for public transport and the fuel discount. There should also be a one-time payment. All of this spending needs to be refinanced, since the federal budget for 2022 has a high level of new debt at almost 139 billion euros. Interest rates will soon rise again, making it more expensive to take on new debt. In order to have less new debt from next year and to reintroduce the debt brake, Christian Lindner and his Ministry of Finance are putting all spending to the test. Lindner would like to eliminate unnecessary subsidies. The FDP politician includes the purchase premium for plug-in hybrids and electric cars. So far, new car buyers can receive a BAFA subsidy of 6,000 euros for an e-car up to a net list price of 65,000 euros. For this, however, the e-car must have been registered by December 31, 2022. In addition, the car manufacturers add 3,570 euros as a manufacturer’s share as a bonus, so that you get a total of 9,570 euros in a subsidy. From next year this should be over. At the time the article was created, the statement was that the BAFA share will be completely eliminated from January 1st, 2023.

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Since June 16, some car manufacturers, such as Opel, have only been offering a reduced manufacturer’s share as a bonus. Due to delivery problems as a result of the Ukraine war and the ongoing coronavirus pandemic, many electric cars currently on order will not reach buyers until sometime next year anyway. According to Christian Lindner’s considerations, none of these buyers will then receive any more BAFA subsidy bonuses. The Association of International Motor Vehicle Manufacturers is not pleased with Christian Lindner’s statements. According to VDIK President Reinhard Zirpel, the current discussion alone is about a possible end to purchase premiums for electric cars to “massive uncertainty among customers”. The fact is that the prices for e-cars have recently increased noticeably, as shown in the example on the next page.

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Reference-www.pcgameshardware.de