Electric cars in Germany: EV subsidies 2024

Germany has long been a leader in the global automotive industry and in recent years has taken significant steps to promote electric vehicles (EVs) as part of its environmental goals. This article addresses electric cars in Germany: EV Subsidies 2024 While the government continues to promote a more environmentally friendly and sustainable future, electric vehicle subsidies play a key role in making electric vehicles more accessible to consumers.

Financing EV for 2024

At the beginning of 2024, the structure of the promotion of electric vehicles in Germany will change. These adjustments are part of efforts to further promote electro-mobility while at the same time ensuring the efficient use of funds.

Reduction of federal contributions for new electric vehicles: For newly purchased electric vehicles with a net list price of up to 45,000 euros, the federal contributions will be reduced to 3,000 euros. This has been adjusted compared to the higher funding rates of previous years.

Manufacturer contributions: The manufacturer's share remains half of the federal government's contributions. This means that for a new electric car with a net list price of up to 45,000 euros, the manufacturer's share is 1,500 euros.

Used car promotion: Young used electric vehicles will be continuously promoted. The maximum grant here is 3,600 euros, and only if the vehicle was first registered in the EU state less than 1 year ago and has not driven more than 15,000 kilometers.

Vehicle leasing: The same support structure applies to the leasing of new and young used electric vehicles. The amount of subsidies depends on the duration of the lease agreement. A rental contract with a minimum of 24 months will be granted a full subsidy.

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There is no funding for more expensive models: it is important to note that electric vehicles with a net list price of more than 45,000 euros will no longer receive funding from 2024. This is a significant change from previous regulations, including vehicles up to a net list price of 65,000 euros.

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Funding restrictions: Funding is limited in time. In order to receive an environmental bonus, it is important to submit an application for funding within 1 year after the registration of the vehicle.

Expanding focus on battery electric vehicles (Bev): In 2024, Bev subsidies remain, although slightly adjusted compared to the previous year. Purchasers of fully electric vehicles with purchase prices of up to 45,000 euros can benefit from government subsidies, but the amount has been slightly reduced compared to 2023. The environmental bonus currently offers up to €4,500 for vehicles in this price range, ensuring that electric vehicles continue to be an attractive option for consumers.

Eligibility and Application Process

After _2023/9/1, only individuals can apply for environmental bonus. Exceptions are commercial purchases, leases or temporary employment. The applicant must purchase or lease the vehicle and be registered as the owner in the vehicle document.

The Federal Bureau of Economic and Export Control (BAFA) is responsible for information on environmental bonuses and applications for financing electric vehicles. The application is submitted through the BAFA website, where a fully digital procedure is available. Please note that the application can be made only after the purchase and registration of the vehicle. ‍

The processing time of the application in _BAFA is now very fast. As a rule, the process from application to approval and subsequent payment of the grant takes four to eight weeks. Applicants have the opportunity to track the status of their applications online. For this purpose, you need a specific transaction number and zip code of the application.

The importance of EV subsidies

Subsidies for electric vehicles have become a major driver of Germany's growing electric vehicle market. The federal purchase premium and environmental bonuses have allowed electric car buyers to significantly reduce the cost of their own cars. These incentives contribute to the fact that Germany has become one of the largest markets for electric vehicles in Europe 1. Sales are increasing year by year, as more and more consumers are choosing eco-friendly alternatives.

However, as the government continues to adjust its programs to balance market demand, fiscal responsibility and environmental goals, the subsidy situation for electric vehicles continues to evolve. After 2024, Germany has made some notable changes to its subsidy system, with a particular focus on battery electric vehicles (Bevs).Meanwhile, funding for plug-in hybrids (Phev) will be gradually reduced, reflecting the government's shift to promoting electric vehicles rather than hybrid vehicles.

conclusion

Even if subsidies are cut slightly in 2024, the government's commitment to electrification of the automotive industry remains strong. Germany has set ambitious goals to reduce CO2 emissions and increase the number of electric vehicles on the road. Through affordable Bev incentives, the government wants to help more people in the transition to electric mobility and ensure that electric vehicles are not only a luxury for the wealthy, but also a viable option for the average consumer.