Volkswagen to pay subsidies for ID. EV buyers in Germany

BERLIN: Buyers of Volkswagen ID. all-electric vehicles will have their subsidy paid for by the automaker after the government ended a state scheme prematurely, the company said today.

The offer will apply to private customers in Germany who ordered an eligible vehicle from the all-electric ID. range before Dec 15, it said.

Vehicles delivered and registered this year will receive the full subsidy of up to €6,750 (RM34,586).

Those registered between January 1 and March 31 will receive €4,500 (RM23,057), Volkswagen said, in line with a reduced subsidy offered in the state scheme before it was scrapped as part of a revised 2024 budget.

"We see it as our responsibility to support the system change towards electromobility," said Imelda Labbé, Volkswagen board member for sales, marketing and aftersales.

Germany's economy ministry ended the seven-year subsidy programme for electric vehicles on Monday, scrapping plans to offer reduced subsidies until the end of 2024.

Chancellor Olaf Scholz's Social Democrats and opposition conservatives criticised the move, saying it would hit German carmakers already struggling to bring down prices to match Chinese and U.S. competitors.

Stellantis on Monday also said it would fund the full subsidy until Dec 31. It said after that it would offer a reduced subsidy for customers who register their vehicles by Feb 29.