ZDK welcomes new funding for electric cars

The German government intends to promote the purchase of electric vehicles and hybrids and is allocating three billion euros for this purpose. The automotive industry sees this as the right signal to establish electromobility in society.

The Federal government The government aims to boost demand for electric vehicles and plug-in hybrids. To this end, the coalition committee has decided to launch a new subsidy program. The program is intended to benefit "low- and middle-income households," who will receive a basic premium of €3.000 upon purchase. The government is allocating €3 billion for this purpose. 

Only households with an annual income of less than €80.000 are eligible. The income limit increases by €5.000 for each child. If the monthly income is below €3.000, the subsidy increases by €1.000. The basic subsidy also increases by €500 per child, up to a maximum of €1.000.

Important boost for the electric vehicle market

The Central Association of the German Motor Vehicle Industry The German Association of Motor Trades and Repairs (ZDK) welcomes the fact that the governing coalition has decided on measures to promote electromobility and that it is intended to reach the middle class. The ZDK sees this as an important boost for the private electric vehicle market and now proposes additional support through charging vouchers. These should apply to used cars and specifically target price-sensitive buyers. 

The proposed measures send the right signal to firmly establish electromobility in society. "This will effectively reach the middle class, especially families with children," explains ZDK President Thomas Peckruhn. However, there is a lack of impetus in the segment of young, electric used cars. Because of the subsidy, they could become slow sellers. 

Avoid more bureaucracy

Peckruhn: "A sufficiently funded charging voucher along the lines of 'One year of free charging' would be exactly that: immediately noticeable, easy to understand, and an equally attractive offer for used car buyers. This way, we reach customers in price-sensitive income groups who would never be able to afford a new car and are more likely to opt for a used one."

The ZDK strongly advocates that funding applications and commitments be handled directly between customers and the KfW development bank The process will be streamlined so that car dealers don't have to check and document the relevant income statements. "We already have enough bureaucracy and don't need any more," said Peckruhn.

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