Monday, May 30, 2016

Germany EV Incentives

After a looong discussion, the German government has finally decided to lauch a decent incentives package to promote plug-in vehicles, but there aren't still any published official documents on the incentives.

An informed EVS reader tipped me on this, just an unofficial thread ( where a consumer shares what he heard from a BMW dealer. The dealers received the information about the incentives on May 25th.
The incentives were decided by the German Government on May 18th and the linked thread claims that any car purchase that was made from May 19th on is eligible for the incentives. The 60.000€ is the price without taxes, this means that cars up to 71.400€ base price can profit. This cover pretty much all models, except the Tesla, XC90, Q7, i8 or the Cayenne for example.
BMW will reduce the price (Including taxes) by another 1.500€, the incentives are worth 2.000€ (Without taxes) or 2.380€ (Including taxes), so 3.880€ from BMW plus 2.000€ from the state ( is where the car buyer has to claim the 2.000€ from the state) makes 5.880€ in total for BMW BEV cars. The vehicle tax exemption (~50€ per year for a BEV) remains at 10 years.
If these kind of incentives are spreaded across the several EV makers, then we will probably have a huge opportunity for the German Plug-in market to grow significantly and become the largest of the Old Continent.

Last month i made an article for the EAFO newsletter, analyzing the impact of Plug-ins in the German auto market and the Picture presented wasn't very flattering, the only segment where EV's had a significant share (As in more than 1%) was the E-Segment (Audi A6, BMW 5-Series), where Plug-ins had 2.35% share, all thanks to the disruptive Tesla Model S...

The other class above 1% was the B-Segment (BMW i3, Renault Zoe), with only 1.05%, so there is a lot of room to grow, i really think/hope this will be an important move for Plug-ins in Europe and will probably be the most significant event in the 2016 Euro EV-Scene.

To be followed closely here...

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