Germany will reduce financial incentives to buy electric cars next year after an agreement within the governing coalition, as the vehicles’ growing popularity makes government subsidies unnecessary, Germany’s economy ministry said on Tuesday.
The incentives, or premiums, paid to buyers of electric cars will expire completely once an allocated sum of 3.4 billion euros ($3.44 billion) from the next two years’ budget is spent, according to government sources.
“E-vehicles are becoming more and more popular and will no longer need government subsidies in the foreseeable future,” Economy Minister Robert Habeck said in a statement.
Under the plan, premiums for fully electric-powered vehicles priced below 40,000 euros will fall to 4,500 euros at the beginning of next year from 6,000 euros currently, and fall to 3,000 euros in the following year.
For cars priced over 40,000 euros the premium will drop to 3,000 euros at the start of next year from 5,000 euros currently.
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