Germany Gives Electric Cars Potential Sales Boost Via Subsidies

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Germany is raising subsidies on electric vehicles as major automakers – including Volkswagen, Audi, and Mercedes-Benz – plan to introduce a wide range of EVs to meet European emissions goals. The added subsidies will take effect from 2020 to 2025.

  • The German government is raising subsidies on electric vehicles.
  • These subsidies range upward to 6,000 euros (about $6,600) for electric cars costing less than 40,000 euros.
  • This move comes as German automakers are introducing mainstream-minded EVs, like the new Volkswagen ID.3 hatchback.
  • Europe remains committed to aggressive emissions targets that would be unreachable without boosting EV sales.

The German government is sweetening the pot for anyone considering an electric vehicle. That’s because subsidies for full-electrics and plug-in hybrid models are getting a significant boost. That’s according to this Reuters article, which detailed government documents aimed at helping EVs gain wider acceptance, and hit higher sales volumes in the fiercely competitive automotive marketplace.

Pricing matters, even when the car you’re considering starts out with zero emissions. For electric vehicles costing less than 40,000 euros (about $44,000 dollars), German buyers will be able to get a maximum subsidy of 6,000 euros. This is a significant jump from the current level of 4,000 euros. Cars costing more than 40,000 euros get a maximum subsidy of 5,000 euros. Any electric car or truck costing 60,000 euros or more is exempt from any subsidized price program.

The Volkswagen ID.3 goes arrives in Europe in 2021 – though minus the crazy paint job of this concept rendering. (Photo: VW)

Plug-in hybrids aren’t forgotten, as subsidies for them also rise from 3,500 to 5,000 euros. Even these partial-electric vehicles represent a vital part of the EU’s goal to reduce emissions by 40 percent between 2007 and 2021. This is in addition to ongoing measures aimed at trimming carbon emissions by more than 37 percent between 2021 and 2030.

This news comes as German automakers ramp up production of electric-powered cars and SUVs. Mercedes-Benz has already revealed its EQC sport-utility, while the Audi e-Tron SUV went on sale this model year. Coming soon is the Volkswagen ID.3, an electric hatchback sized about the same as a four-door Golf. The ID.3 will have a starting price of approximately $33,000, with first European deliveries expected in early to mid-2020.


Most people prefer a green and healthy planet, though not all car shoppers want to pay extra for the privilege. Germany is making electric vehicles a less expensive alternative as it looks to combat climate change and reduce carbon emissions.

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