Automakers would share German electric car incentive plan cost

By REUTERS | 29 February 2016


BERLIN: Germans could get up to 5,000 euros (RM23,000) to buy an electric car under government proposals which involve the auto industry shouldering 40% of the cost, say government sources.

Germany has a goal of 1 million electric cars on its roads by 2020, but has so far made little progress in encouraging drivers to switch from mostly cheaper diesel and petrol models.

The incentive plan, which was put together by the environment, transport and economy ministries, still needs approval from the finance ministry which wants a funding concept for the 1.3-billion-euro (RM6bil) plan that doesn't cut into the budget.

Under the proposal, businesses would receive premiums of 3,000 euros (RM14,000) for each electric car under a programme that runs to 2020. Incentives will fall by 500 euros (RM2,310) each year.

"We were not party to these plans and government consultations on this are still ongoing," a finance ministry spokesman said on Friday.

Among German carmakers, BMW, Daimler's Mercedes and Volkswagen produce all-electric cars, while Audi and Porsche also have plans to build their own.

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