Germany ends the Eco Bonus

The electric car purchase incentive in Germany is a thing of the past. A sudden decision that is already sparking debate.

The gunshot didn’t come from where we expected! The German government abruptly ended its subsidy program for electric cars effective immediately on December 17. The Ministry of Economics and Climate declared in a press release on Saturday, December 16, that subsidy applications of up to 4,500 euros for the purchase of a battery electric vehicle are no longer possible. Payments already approved will be honored, and existing applications “will be processed in the order they were received and, provided the eligibility criteria are met, approved”. The ministry stated that a total of 2.1 million electric vehicles had been subsidized under this program, with a total budget of 10 billion euros since its inception in 2016. “The funding program was very successful and significantly advanced electric mobility in Germany,” the ministry added, noting that the subsidy was anyway set to expire next year.

The sudden end of this subsidy for electric cars surprised many. Buyers who advanced the bonus at the time of signing the contract and could only claim it once the vehicle was registered now face the risk of being left empty-handed and out of pocket in the thousands.

The government supports an ambitious plan to see 15 million electric cars on German roads by 2030. The reduction of subsidies understandably fuels concerns that this target may not be achieved. German experts estimate that the elimination of the subsidy program could lead to a decrease of 200,000 new electric vehicle registrations next year.

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