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Purchase incentive for new cars? – Image: Xpert.Digital

Opinion poll on car purchase incentives in Germany by drive type 2020 – The majority rejects government purchase incentives for automobiles: A total of 55 percent of respondents in the ARD-DeutschlandTREND survey stated that they are completely against the introduction of a purchase incentive for new cars, regardless of the drive type. As part of the economic stimulus package to overcome the economic consequences of the Corona crisis, the grand coalition decided to promote only alternative drive systems through bonus payments. The subsidies for the purchase of electric, hybrid, or hydrogen vehicles, which already exist in the form of the environmental bonus, are to be increased.

The source does not specify the missing percentage points from 100 percent. The question was phrased in the source as follows: “Another proposal concerns so-called purchase premiums for the purchase of new cars. In this case, the state would cover part of the purchase price. Should such a purchase premium only apply to electric cars? Should there also be a smaller purchase premium for cars with combustion engines? Should there be the same purchase premiums for all new vehicles? Or are you completely against such government incentives for buying new cars?”

Which form of a purchase incentive for new cars would you favor?

• 55%: I am completely against government incentives for buying a car
• 19%: The same purchase premiums for all new vehicles
• 18%: Purchase bonus only for electric cars
•   6%: Lower purchase premium also for cars with combustion engines

Amount of the environmental bonus for the purchase of electric vehicles – Image: Xpert.Digital

This statistic shows the amount of the purchase premium for electric vehicles, also known as the environmental bonus, by type of electric vehicle in Germany in 2021 (as of April 27, 2021). The purchase (buying or leasing) of an electric vehicle, as well as corresponding used vehicles, are eligible for funding. The premium is shared equally between the federal government and the vehicle manufacturer. The environmental bonus for purely battery-electric vehicles with a net list price of up to €40,000 amounted to €9,000 per vehicle in 2021.

The stated subsidy rates apply retroactively to vehicles registered from June 4th onwards. According to BAFA, eligible vehicles include pure electric cars, plug-in hybrids, fuel cell cars, and corresponding used vehicles.

Amount of the environmental bonus for the purchase of electric vehicles in Germany in 2021

Federal share

• Battery-powered vehicle up to €40,000 net list price – €6,000
• Battery-powered vehicle with a net list price of €40,000 to €65,000 – €5,000
• Plug-in hybrid vehicle up to €40,000 net list price – €4,500
• Plug-in hybrid vehicle with a net list price between €40,000 and €65,000 – €3,750

Manufacturer share

• Battery-powered vehicle up to €40,000 net list price – €3,000
• Battery-powered vehicle with a net list price of €40,000 to €65,000 – €2,500
• Plug-in hybrid vehicle up to €40,000 net list price – €2,250
• Plug-in hybrid vehicle with a net list price between €40,000 and €65,000 – €1,875

Number of environmental bonuses applied for for electric cars – Image: Xpert.Digital

Volkswagen is number one in applications for purchase incentives for electric cars. By June 2021, the number of applications for purchase incentives for battery-electric or plug-in hybrid vehicles from the Wolfsburg-based automaker amounted to approximately 102,400. Mercedes-Benz and Renault followed in second and third place, respectively.

Vehicles up to €65,000 are eligible for funding

Eligible for funding is the acquisition (purchase or leasing) of a battery electric, plug-in hybrid or fuel cell vehicle that is being registered for the first time and does not exceed a net list price of the base model of 65,000 euros.

Incentive to buy electric cars

The goal of the bonus payments for car purchases, introduced in July 2016, was to promote electromobility and boost sales of relatively expensive electric vehicles, in order to get closer to the target of one million electric cars by 2020 set by the then German government. As of January 1, 2021, approximately 309,100 electric cars were registered in Germany. New registrations of electric cars have increased steadily since 2016.

Number of environmental bonuses applied for for electric cars in Germany by manufacturer up to June 2021

• Volkswagen – 102,405
• Mercedes-Benz – 68,639
• Renault – 64,830
• BMW – 64,821
• Smart – 38,146
• Hyundai – 35,857
• Audi – 35,498
• Tesla – 33,208
• Kia – 25,319
• Mitsubishi – 21,805

Number of hybrid cars in Germany – Image: Xpert.Digital

The number of hybrid cars is at a record high – in 2021, the number of passenger cars with hybrid drive systems in Germany reached approximately one million. In 2011, there were only about 37,300 hybrid cars registered in Germany. Since then, the number has increased steadily every year. A hybrid vehicle is defined as a vehicle with at least two energy converters and two integrated energy storage systems to power the vehicle. Energy converters include, for example, electric, gasoline, and diesel engines; energy storage systems include, for example, batteries, fuel tanks, or gas tanks. Hybrid vehicles that also have an electric motor are classified as electric cars (plug-in hybrids).

Purchase bonus for electric vehicles and plug-in hybrids

The purchase or leasing of various types of electric cars is eligible for a government subsidy in Germany called the "environmental bonus." Eligible purchases (buying or leasing) are electric vehicles that are being registered for the first time and whose net list price for the base model does not exceed €65,000. Pure battery electric vehicles receive subsidies of up to €9,000, and hybrid electric vehicles receive up to €5,625. Two-thirds of the subsidy is covered by the federal government and one-third by the car manufacturer. This increased subsidy (previously €4,000 for pure battery electric vehicles and €3,000 for hybrid electric vehicles) was introduced as part of the economic stimulus package to combat the effects of the COVID-19 pandemic.

Demand for alternative drive systems is increasing

The share of conventional powertrains in new vehicle registrations has declined significantly in recent months, while the number of electric cars in Germany continues to rise. Other alternative powertrains, however, have not shown comparable growth; plug-in hybrids and battery electric vehicles (BEVs) still dominate the list of new registrations.

Number of hybrid cars in Germany from 2011 to 2021

• 2011 – 37,256 hybrid cars in Germany
• 2012 – 47,642 hybrid cars in Germany
• 2013 – 64,995 hybrid cars in Germany
• 2014 – 85,575 hybrid cars in Germany
• 2015 – 107,754 hybrid cars in Germany
• 2016 – 130,365 hybrid cars in Germany
• 2017 – 165,405 hybrid cars in Germany
• 2018 – 236,710 hybrid cars in Germany
• 2019 – 341,411 hybrid cars in Germany
• 2020 – 539,383 hybrid cars in Germany
• 2021 – 1,004,089 hybrid cars in Germany