Germany to extend electric car subsidies to 2025

BERLIN (Reuters) – Germany will extend its enviromental subsidy for electric cars until 2025, government and auto industry sources told Reuters on Monday, a day ahead of a German auto industry summit in Berlin.

In June, Germany doubled incentives for electric cars, which comprised of a 3,000 euro (£2,693) bonus for electric and a 2,250 bonus for hybrids costing below 40,000 euros.

The increased bonus will now be extended beyond 2021, but lowered in two steps until 2025, the sources said. The extra bonus for hybrids could be scrapped altogether from 2022.

For customers, the government environmental bonus can be topped up with a 3,000 euros manufacturer stipend.

Germany’s economics ministry declined to comment on the details but a spokeswoman said Economics Minister Peter Altmaier had advocated extending the subsidies.

A scrappage scheme for older diesel trucks will also likely be approved, at the automotive summit in Berlin, the sources said.

Electric cars made up 1.8% of new passenger car registrations in Germany in 2019.

Note: This news is a re-post of the original posted on the Yahoo Finance website.