In sharp contrast to what its French neighbors are doing, the German government chose to halt its EV subsidy program over the weekend. And we do mean abruptly: the announcement was made on December 16, and the suspension went into effect on December 17, the date from which the German government will no longer consider new applications for the subsidy.
Fortunately for would-be EV owners, Tesla, VW, Mercedes, and Stellantis have opted to foot the bill themselves in various ways. They were already providing €2,250 to the subsidy because that was the manufacturer’s contribution, but now they are also donating what used to be the government’s share: up to €4,500 on top of that to make EV ownership more appealing.
The comment from Tesla is shown above. It has already begun to pay for vehicles bought beginning December 18 and delivered by December 31. There’s no word on what happens to automobiles delivered next year, so the brand’s incentives will presumably stop on January 1.
In the meantime, Mercedes issued a press release saying it will continue to pay its manufacturer’s share of €2,250 for orders made up to and until December 31.
On top of that, for deliveries and registrations between December 18 and December 31, it will also foot the bill for the government’s share. For orders delivered in 2024 and those made from January 1, 2024, the company will pay the manufacturer’s share only, “based on the subsidy originally planned for 2024”.
VW, on the other hand, told Reuters it will pay all of the subsidy itself (up to €6,750, both the manufacturer’s share and the government’s share) for cars ordered before December 15 and delivered and registered this year.
The VW EVs registered between January 1 and March 31 will receive €4,500, which is in line with the reduced subsidy that was planned for 2024 before it was scrapped by the government.
Stellantis will also cover the full subsidy for all of its brands until December 31, and will offer a reduced subsidy for customers who register their vehicles by February 29.
It will be interesting to see what effect the ending of government subsidies will have on EV sales in Germany shortly – was the growth so far driven primarily by those subsidies or was it more organic? We’ll let you know when we find out.
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