The financial support for the purchase of electric cars was in greater demand in July than at any time since its introduction in mid-2016. 19,993 applications for the so-called innovation premium were submitted last month, as the Federal Ministry of Economics informed the Reuters news agency. The figures are to be officially announced in the course of the day. This means that a total of 69,606 applications were submitted by the end of July this year – almost 79 percent more than in the same period in 2019.
As the Ministry of Economics further announced, 30,479 applications for purchase premiums for plug-in hybrids were submitted between January and July, which means that they accounted for a share of around 44 percent. 25 applications (0.04 percent) were made for fuel cell cars. In the same period last year, the share of plug-in hybrids was only about 27 percent, that of fuel cell cars 0.1 percent.
The German government has been promoting the purchase of electric cars and hybrid models for years. As part of the latest economic stimulus package to tackle the coronavirus crisis, the state share of subsidies was doubled. This has been in effect since July 8. In addition, the value-added tax was temporarily reduced, which should help the car industry, among others. Until the end of 2021, buyers of electric cars can receive a subsidy of up to 9,000 euros, with a maximum of 6,750 euros for hybrid models.
Minister of Economics Peter Altmaier said that the increased subsidies gave economic momentum at the right time. “Our goal is for the upswing to pick up significantly in the fall.” This year, Germany is threatened by the worst recession since the Second World War because of the pandemic, but the situation should improve in the course of the year.
The Federal Office of Economics and Export Control (Bafa) is responsible for processing the applications. “We are confident that the high demand will continue”, said Bafa President Torsten Safarik.
The promotion of hybrid models is controversial because it is not clear how much is driven electrically with them. It is questionable, however, whether the production of purely electric cars is sufficient to keep up with demand. Many German manufacturers continue to focus on combustion engines and diesel vehicles.
Image source: https://bit.ly/2ECfdFp