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Interesting read here about the new incentives in place for car buyers in Germany.


"FRANKFURT -- Germany is doubling incentives offered to buyers of battery-powered as part of a 130 billion-euros ($146 billion) economic recovery package for the period through the end of next year -- but the government refused pleas for the program to include internal-combustion cars.

Buyers of full-electric cars with a net list price of up to 40,000 euros will be eligible for a grant of 9,000 euros, including 6,000 euros from the government and 3,000 euros from automakers.

Buyers of plug-in electric cars will also get higher subsidies.

The threshold means that many high-priced vehicles from premium automakers such as BMW, Mercedes-Benz, Audi and Tesla are not eligible for the full amount. Prices for the Mercedes EQC start at 71,590 euros and Audi's e-tron prices start at around 69,900 euros. Tesla's lowest priced Model 3 just squeezes in at 39,990 euros, according to the government's list of eligible vehicles.

The stimulus will benefit mainly cheaper electric cars such as VW's new ID3 model, which will cost 29,990 euros in Germany when it launches this summer, as well as the Peugeot e-208 GT, which costs 36,600 euros, and the Kia e-Niro, which starts at 34,290 euros.

The government estimates the cost of the purchase incentives to the taxpayer at 2.2 billion euros.

As part of the package, new-car buyers will benefit from a lowering of value-added tax to 16 percent from 19 percent.

The government will also overhaul motor vehicle taxation. From January 2021, cars with emissions of more than 95 grams of CO2 per kilometer will face a staggered tax that will penalize vehicles with high CO2 emissions such as SUVs.

Politicians hope the fresh funds will help to stimulate slow demand.

Registrations fell 50 percent to 168,148 in Germany in May, the KBA motor transport authority said on Wednesday. The drop followed a 61 percent decline in April when showrooms were closed because of coronavirus restrictions. Dealerships were allowed to resume car sales after April 20.

Dealers disappointed

The ZDK German dealers association said it was disappointed that incentives will be offered only for EV sales.

The stimulus program is "not even a drop in the ocean" in helping to move unsold new cars worth around 15 billion euros that are in dealerships and on dealers' books, ZDK President Juergen Karpinski said in a statement.

The reduction in value added tax to 16 percent, limited to six months, will have a very small effect on sales, he said.

Germany's governing conservative and Social Democrats (SPD) coalition agreed on the stimulus package on Wednesday after they had wrangled for days over incentives to boost new car sales hit by the coronavirus crisis.

Social Democrats opposed offering incentives for vehicles with gasoline and diesel engines, arguing that this would undermine Germany's climate protection goals.

Auto industry executives had lobbied for the stimulus to apply to internal combustion and electric models. They were supported by the state premiers of Lower Saxony, Bavaria and Baden-Wuerttemberg, home to Volkswagen, BMW and Daimler.

Full-electric cars made up 1.8 percent of new passenger car registrations in Germany last year, with diesel and gasoline cars accounting for 32 percent and 59.2 percent percent respectively. Hybrid cars made up 6.6 percent of registrations.

Other European countries have started to unveil their own stimulus packages. An 8 billion-euro plan in France to aid the auto industry includes incentives for electric vehicles that can reach 12,000 euros with scrapping incentives for eligible buyers.

Reuters and Bloomberg contributed to this report"



€15B of car sitting around unsold, with no incentives for them vs BEV/PHEV's seems like the market shift has begun.
 

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- but the government refused pleas for the program to include internal-combustion cars.
So far, so good

Buyers of full-electric cars with a net list price of up to 40,000 euros will be eligible for a grant of 9,000 euros, including 6,000 euros from the government and 3,000 euros from automakers.
Yep, keep going

Buyers of plug-in electric cars will also get higher subsidies.
Isn't a plug-in electric car the same as a full-electric car?

Or do they mean a plug-in hybrid? In which case the programme would include internal-combustion cars.

Someone doesn't know what they are talking about.
 

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Discussion Starter #3
They are including plug-in hybrids, just a bad translation. I'd imagine that the ICE only is what they should have said, and MHEV etc.
 

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They are including plug-in hybrids, just a bad translation. I'd imagine that the ICE only is what they should have said, and MHEV etc.
Not very forward looking then. :) I didn't realise the article was translated from German. I see that it's behind a paywall - I assume you have a subscription then.
 

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Not very forward looking then. :)
It's a lot more forward looking that doing nothing, also they are about 4 cars made in Germany that are BEV, can you imagine the manufacturers being a bit surprised if they took away PHEV as an option/incentive.
 

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Let's hope that our Government follows suit and doesn't give in to the bleating from JLR. The French, Germans and South Koreans will be very grateful.
 

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It's a lot more forward looking that doing nothing, also they are about 4 cars made in Germany that are BEV, can you imagine the manufacturers being a bit surprised if they took away PHEV as an option/incentive.
Well this government has. At least that's one thing they have managed to get right.
 

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Let's hope that our Government follows suit and doesn't give in to the bleating from JLR. The French, Germans and South Koreans will be very grateful.
Based on today's briefing from the Transport Secretary there's a lot of talk of how electric vehicles are becoming popular etc. and how the Government wants to be green, but no implication of any further incentives for them.

Admittedly they haven't really announced any economic stimulus packages yet but you'd think there would have been some more solid hints along with the usual green is good speeches...
 

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Based on today's briefing from the Transport Secretary there's a lot of talk of how electric vehicles are becoming popular etc. and how the Government wants to be green, but no implication of any further incentives for them.

Admittedly they haven't really announced any economic stimulus packages yet but you'd think there would have been some more solid hints along with the usual green is good speeches...
There's not much point listening to the announcements on those topics. It's like the budget, until someone has been through the details and appendices of the hundred page document you only get sound bites and what they want you to hear not what will actually happen.

So this years went something like - we are making Xhundred million available to drive adoption of green electric cars - and that turned out to mean we're reducing the PICG again, and as a bonus surprise we're scrapping the OLEV grant.
 

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Not very forward looking then. :) I didn't realise the article was translated from German. I see that it's behind a paywall - I assume you have a subscription then.
I think 9000 € is fairly progressive assuming it's significantly less for PHEV. Especially seeing as they expect the manufacturers to chip in.
The tiered car tax rates based on CO2 sounds familiar. Don't all EU states already do that?
 

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There's not much point listening to the announcements on those topics. It's like the budget, until someone has been through the details and appendices of the hundred page document you only get sound bites and what they want you to hear not what will actually happen.

So this years went something like - we are making Xhundred million available to drive adoption of green electric cars - and that turned out to mean we're reducing the PICG again, and as a bonus surprise we're scrapping the OLEV grant.
Valid point, this year's budget was very much waffle with sound bites as you said!

Seeing as the only thing really rumoured so far is a possible scrappage scheme afaik it seems unlikely there will be anything as good as what France and Germany are offering.
 

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I think 9000 € is fairly progressive assuming it's significantly less for PHEV. Especially seeing as they expect the manufacturers to chip in.
The tiered car tax rates based on CO2 sounds familiar. Don't all EU states already do that?
Well we DID have tiered tax rates based on CO2 emissions but those were scrapped as part of the government's anti-green programme. Presumably to make everyone's big Jags and Range Rovers cheaper to run.
 

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Also in the news that they will be requiring every petrol station to install EV charging:

 

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Well is a very good COVID related topic.

COVID has buggered us and many governments and industries.

So here in good old UK, the PICG has been lowered and OLEV is under threat.

My pre Lockdown oreder has suffered a £500 increase as my PICG is now £3000 and not £3500.

I'm probably not the only one stuffed by this. IF and it's a big IF, if the Government does do something to stimulate/promote EV sales and the like, it won't be retrospective, but in my own opinion it should be and they should reset everything to 1 March 20. But they won't.
 

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Company car tax is zero on BEVs in the UK and will be very low going forward. Road tax is also zero. No congestion charges either. UK incentives are still pretty good overall.
Company car tax isn't a great incentive to drive the general public towards BEV adoption though.
Works great to drive business adoption but an average consumer (such as myself) couldn't care less and would rather see further grants or incentives made available.

As for the congestion charge, it doesn't affect the vast majority who don't travel into London.

Not disagreeing that there aren't benefits in the UK, it's just beyond the PiCG and Zero VED they don't offer anything to most people.
 

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Well this government has. At least that's one thing they have managed to get right.
I disagree! Reducing grants is not an encouragement to buy an EV. I admit there may be better ways to incentivise uptake but this government seem to be going in reverse. :(
 

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Company car tax isn't a great incentive to drive the general public towards BEV adoption though.
Works great to drive business adoption but an average consumer (such as myself) couldn't care less and would rather see further grants or incentives made available.

As for the congestion charge, it doesn't affect the vast majority who don't travel into London.

Not disagreeing that there aren't benefits in the UK, it's just beyond the PiCG and Zero VED they don't offer anything to most people.
Company cars make up more new car sales than private purchases so it's absolutely right to target incentives towards company cars.
 

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I always like to to a get to the simple facts.

If Germany and other EU Countries attempt to discount new car sales (EV) for their citizens, by means of a Grant, why can't the UK Government do something similar.

We are still a Car manufacturing country, so it's not like there's an uneven playing field here. The are going to be many of us tightening our belts.

How is the Finance Sector going to cope with reduced business or potential defaulters?

My simple thought process is to reduce the risk/lower the amount of borrowing etc.
 
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