Electric car buyers should receive a subsidy by 2025

Longer funding for e-cars, numerous new charging stations and more: the government is planning a series of measures to transform the German car landscape.

VW production in Zwickau.

Dhe federal government wants to promote electromobility even more and make driving with e-cars more attractive. According to the decision paper for the “car summit” of politics and business, which should take place on Tuesday evening via video conference, it wants to support electromobility with an additional three billion euros and extend the so-called innovation bonus until 2025. Car buyers can thus receive a subsidy for the purchase of an electric car beyond 2021.

The state and manufacturers are currently financing a premium of up to 9,000 euros. So far, both fully electric vehicles and plug-in hybrids have been funded. From 2022 onwards, the premium will only be paid for plug-in hybrids if they can achieve a certain range with the electric drive. In total, the federal government will provide up to one billion euros for the premium by 2025. For a long time, the previous environmental bonus had hardly increased the incentive to buy. Since the increase to the “innovation bonus”, the sales figures have increased faster.

The paper for the “Auto Summit”, a regular exchange between the federal government, the federal states and representatives of the automotive industry, also includes a funding program for the exchange of older trucks. Federal Transport Minister Andreas Scheuer (CSU) insisted on this. Above all, alternative drives using electricity and hydrogen are to be promoted.

The establishment of private charging stations is funded through Kfw loans

Companies should also receive a subsidy for renewing their fleets if, after purchasing a new Euro 6 diesel truck, they break up an older Euro 3, 4 or 5 truck. The federal government has budgeted 500 million euros for the funding, plus the same amount for public procurement. A future fund is also endowed with one billion euros. It is intended to support medium and long-term strategy projects at the location as well as the regional transformation.

Drivers repeatedly complain that the payment processes at the charging stations are too complicated and vary depending on the provider. In order to make driving e-cars more suitable for everyday use, the filling stations should participate in the expansion of the charging infrastructure. By 2022, 25 percent of the petrol stations are to be equipped with fast charging stations, then 50 percent by 2024 and finally 75 percent of the petrol stations by 2026. Politicians want to hold talks about a voluntary commitment with the oil industry. The establishment of private charging stations is funded through Kfw loans.

Meanwhile, the energy industry and the automotive industry are arguing about the speed at which the charging infrastructure should be expanded. Immediately before the “car summit”, the Federal Association of Energy and Water Management (BDEW) protested against the accusation of the Association of the Automotive Industry (VDA) that the number of charging stations was not increasing fast enough to meet the growing demand. VDA President Hildegard Müller said: “Today there are already 13 e-cars on a charging point, according to our forecasts it will be 20 at Easter.”

Energy industry sees itself in advance

The municipalities have a lot of catching up to do. According to the BDEW, the number of public charging stations has risen by 5,300 to a good 33,100 since April. This means that the energy industry, which provides around 80 percent of the charging points, is going “massively in advance”. BDEW managing director Kerstin Andreae said that despite the increase in new registrations, the number of e-vehicles is not yet sufficient to ensure the economical operation of the charging infrastructure.

According to BDEW extrapolation, there are currently 240,000 fully electric vehicles and 200,000 plug-in hybrids on the road in this country, but as a rule less than 50 percent of them are electrically charged. At least 550,000 fully electric vehicles would be required for economical utilization of the 33,100 charging points.