Government subsidy: The VW e-up! benefits most from the environmental bonus – Image: Grzegorz Czapski|Shutterstock.com
Since May 2016, buyers of electric cars in Germany have been supported with a subsidy, the so-called environmental bonus. According to current figures from the Federal Office for Economic Affairs and Export Control (BAFA), the Volkswagen e-up! model has benefited the most so far: Around 32,000 applications have been submitted to VW since the introduction of the purchase premium (as of October 1, 2021). Second place is held by the Smart EQ fortwo (2017 model) from Daimler, with around 21,000 buyers applying for the environmental bonus. Two models from the US automaker Tesla and the Kona Electric from the South Korean manufacturer Hyundai are also represented in the top list.
Amount of the environmental bonus for the purchase of electric vehicles – Image: Xpert.Digital
Most recently, the German government increased the subsidy as part of an economic stimulus package: For vehicles with a net list price of less than €40,000, the federal government now contributes €6,000 towards the purchase of a battery-electric vehicle or fuel cell vehicle. Together with the manufacturer's contribution of €3,000, this results in a total purchase premium of €9,000. According to media reports, however, the government subsidy in its current form could expire at the end of the year and then revert to €3,000. This could also affect people who bought their electric car this year: The increased premium will only be paid out if the application for the environmental bonus was submitted to the Federal Office for Economic Affairs and Export Control (BAFA) by December 31, 2021. By this date, the eligible electric vehicle must already be registered. Therefore, anyone who has ordered an electric car and cannot register it in 2021 may receive less funding than expected.
The VW e-up! benefits the most from the environmental bonus
Number of environmental bonuses applied for for electric cars – Image: Statista
Environmental bonuses applied for for electric cars in Germany by manufacturer up to 2021
Environmental bonuses applied for for electric cars in Germany by manufacturer until 2021 – Image: Xpert.Digital
Volkswagen is number one in applications for purchase incentives for electric cars. By October 2021, the number of applications for purchase incentives for battery-electric or plug-in hybrid vehicles from the Wolfsburg-based automaker amounted to approximately 137,000. Mercedes-Benz and BMW 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 whose net list price of the base model does not exceed 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 October 2021
- Volkswagen – 137,016 apply for environmental bonuses
- Mercedes-Benz – 87,147 apply for environmental bonuses
- BMW – 79,416 apply for environmental bonuses
- Renault – 76,712 apply for environmental bonuses
- Audi – 48,994 apply for environmental bonuses
- Hyundai – 48,478 apply for environmental bonuses
- Tesla – 47,111 apply for environmental bonuses
- smart – 43,918 apply for environmental bonuses
- Kia – 32,808 apply for environmental bonuses
- koda – 28,643 apply for environmental bonuses
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