Electric car buyers are to receive less support from the state in the future. According to information from the German Press Agency, the federal government agreed on new subsidy rules. The Association of the Automotive Industry criticized the step.

Accordingly, the subsidy for cars that cost less than 40,000 euros will drop from the current 6,000 to 4,500 euros. For more expensive e-cars there should only be 3000 euros, from a purchase price of more than 65,000 euros there will still be no funding. In the course of the coming year, the maximum price for funding is also to be reduced to 45,000 euros. The “Handelsblatt” had previously reported on the agreement.

Accordingly, only private car purchases should be subsidized in the future. There should no longer be a purchase premium for the purchase of electric service or trades vehicles. From a tax point of view, however, electric cars should continue to be preferred as company cars. The funding is to be phased out completely when the available funds of 2.5 billion euros have been paid out.

It was initially unclear whether the bonus can still only be applied for when the vehicle is handed over and not when the contract is concluded. Due to the long delivery times, many car buyers are currently unable to calculate whether and to what extent a subsidy will be paid out.

The president of the German Association of the Automotive Industry (VDA), Hildegard Müller, criticized the cut in funding as “disappointing” to the Funke media group. The decision is “a severe damper on the incentive to buy an electric car”. The abolition of the premium for the purchase of hybrids will particularly affect drivers who have to travel longer distances.

Müller also sharply criticized the lack of clarity regarding the timing of the application. “Due to the additional cap on the subsidy and the unclear award date, the premium threatens to become a gamble for consumers.” The car manufacturers are willing to link the payment to the date of purchase of the electric car. “This important protection of trust fails because of the state.”

There had previously been a dispute in the federal government about the promotion of electric cars. Finance Minister Christian Lindner (FDP) wanted to abolish the purchase premiums. Economics Minister Robert Habeck (Greens) had proposed that at least the funding for plug-in hybrid cars be canceled earlier than planned at the end of 2022. Plug-in hybrids combine an electric motor and a combustion engine. According to Habeck’s plans, there should be less money from the state for pure electric cars in the future.

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