If things continue like this, the subsidy for electric cars will not expire this year

If you buy an electric car or lease it privately, you can receive a subsidy from the state: 2,950 euros for a new car, 2,000 euros for a used one. But if things continue as they are, the funding will not be available at all this year. Therefore, hardly any inquiries are made.

Let’s start with the pot for used electric cars, because it’s pretty empty. Of the 29.4 million euros that the government made available, 18.74 million remained as of March 18. This means that 10.66 million euros were approved for 5,330 used electric vehicles.

Subsidy for new cars

The pot for new electric cars is still quite full. Of the 58 million euros that were available, 47.5 million were still left on March 25th. This means that only 3,560 electric vehicles were funded in three months (10.5 million euros).

If this continues at this rate, there will be money left at the end of December. It is clear to see that subsidies for new cars have become less popular in recent years. This is due, among other things, to the gradual reduction in the amount from initially 4,000 euros to now 2,950 euros.

Stimulation remains necessary

The government planned to further reduce the amount to 2,550 euros in 2024, but backed out in October. Germany suddenly abolished subsidies for electric cars and sales there plummeted. Stimulus measures therefore remain necessary.

Compared to December 2023, German electric vehicle sales fell by 55 percent in January this year. However, according to experts, high interest rates, the weakening German economy and tensions on the world stage also play a role.

Cheaper models

Electric cars are relatively expensive, but fortunately, cheaper models will come onto the market in the near future. For example, the Citroën ë-C3 with a starting price of 24,290 euros and later the Volkswagen ID.2. The currently “cheapest” electric vehicle on the market is the Dacia Spring, which costs 21,750 euros.