16/12/2023 – 17:37
Germany has decided to end subsidies for electric cars. The measure has the capacity to cause damage to the businesses of automakers such as Tesla, Volkswagen, BMW, Stellantis, among others.
The old economic incentive package provided for discounts of up to 4,500 euros on the purchase of electric cars and will end tomorrow, a month ahead of schedule, but in practice the program has already been terminated, as vehicle registration needs to be done before delivery.
The drastic measure was taken by the German government coalition, which is facing a budget crisis. Just a few days earlier, the government had announced that the program would not be extended into 2024, even with a reduced value of 3,000 euros.
Germany's decision comes on top of tighter restrictions on electric car subsidies in France. The country limits the benefit of up to 7,000 euros to electric vehicles manufactured in Europe since December 15th, while vehicles produced in China, such as the Tesla Model 3, are no longer eligible.
The end and restriction of subsidies and credits for electric cars could represent a drop in demand for Tesla, which benefited from these incentives to boost sales. Source: Dow Jones Newswires
#Germany #ends #subsidies #electric #cars #affects #automakers