Germany is considering extending the subsidy for electric cars (EVs) until at least 2025. At the same time, the UK government announces a sales ban on fuel-engine cars from 2030.
Peter Altmaier, Germany's economy minister, is calling for an extension of the EV subsidy scheme, according to Bild am Sonntag. In our eastern neighbours, up to 6,000 euros of subsidy is available from the government for the purchase of an all-electric car. The German subsidy was introduced in 2016 and was increased this year. Next year, the scheme officially ends. This also applies to plug-in hybrids and hybrids, for which 4,500 and 3,750 euros of subsidy are available respectively.
Positive impact on manufacturers
Altmaier foresees, among other things, a positive impact of extending the subsidy scheme on car manufacturers. Among other things, the minister points to employment at these companies and speaks of an innovation premium. This premium should ensure that hundreds of thousands of workers in the car industry will still have good jobs in 10 or 15 years' time.
In the Netherlands, a subsidy of 4,000 euros will be available from 4 June 2020 for the purchase of an electric car. The Dutch government is also encouraging the electrification of the vehicle fleet through, among other things, an exemption from the bpm, which is fixed at least until 2024. The same applies to the motor vehicle tax exemption. A halved rate applies to cars with emissions of up to 50 grams of CO2 per kilometre. A favourable additional tax rate of 4% is also charged for business drivers who opt for an electric car. For regular models, the additional tax rate is 22%.
Brits ban sale of petrol and diesel cars
There are also developments around the electrification of the UK's car fleet. The UK government may want to curb sales of new combustion-engine cars as early as 2030, reports the Financial Times. As recently as February, Johnson announced his aim to introduce such a ban by 2035. So this appears to be brought forward.
The plans were announced by UK Prime Minister Boris Johnson during a speech on UK sustainability policy. The decision could lead to a major shift in UK car sales. Currently, combustion-engine cars still account for the vast majority of UK car sales, according to figures from Society of Motor Manufacturers and Traders. For example, only 7% of vehicles sold in the UK in October were electric-powered.
Exception for hybrids
There is an exception for hybrid vehicles; they may be sold beyond 2030 despite using an internal combustion engine. The sale of hybrids is expected to be banned from 2035.
Author: Wouter Hoeffnagel
