German Ministry wants to extend electric car subsidies

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German Ministry wants to extend electric car subsidies

The economy ministry of Germany had been seeking to extend subsidies for new e-vehicles until 2020, as a revamp effort to increase sales of electric vehicles, a draft guideline seen by a press agency had revealed on Thursday, the 18th of April 2019.

In the wake of a stockpile of diesel emission cheating scandal, which had overwhelmed the nation’s auto industry, Germany had been trying to boost demands of electric vehicles on environmental grounds. Besides, the environment protection rules for the industries including auto-manufacturers became stiffer.

In fact, the recent approach would have been introduced to encourage Germany’s auto-making giants such as Volkswagen and Daimler to invest more on electric vehicles, both of which had encountered multiple lawsuits and vehicle recalls on emission cheating scandal.

According to the spokesman with knowledge regarding the issue, the document had been sent to other German ministries for approval. The draft document, seen by a press agency had also revealed that the Germany’s economy ministry had been seeking an extension of an incentive worth of $4,500 proffered on every purchase of a new e-vehicle until December 31st, 2020, while in its current form, the incentive was scheduled to end by June this year.

Some estimates had displayed that less than 500 million euros were spent so far on new e-vehicle purchase incentives, while a reserve of 1.2 billion euros safeguarded to use for the incentive plan had not yet been touched.