Germany has approved an incentive program to increase electric vehicle sales and charging infrastructure, but more funds will be needed to hit the one million mark.
The German government approved an incentive program on Wednesday with over one billion euros ($1.12 billion) available for all-electric and plug-in hybrid electric vehicles. That’s short of the funds needed to expand its current fleet of over 50,000 electric vehicles in the country today up to the government’s goal of having one million EVs on its roads by 2020. The incentive program funding may need to be doubled to reach that goal.
The new incentives made available this week include: a subsidy of 4,000 euros ($4,485) available for battery electric vehicles; and 3,000 euros ($3,364) for plug-in hybrid electric vehicles. They’ll also receive an exemption from paying a vehicle tax for 10 years, an increase from the previous five year exemption.
There will also be a 25 percent tax rate reduction on electricity used for charging electric vehicles at work by employees. An additional 300 million euros ($3.36 million) has been approved for investing in the nation’s charging infrastructure; most of these funds will be spent on DC fast chargers.
Funding for the subsidies and charging infrastructure will be equally shared by The German government and the auto industry. Nissan reports seeing growing interesting in EV sales in that market. Germany could become one of the largest European markets by sales volumes.
Germany’s incentive program kicks off in late May. Its impact on sales won’t be known until June EV sales numbers come in.