Germany's Habeck wants to boost e-car sales with charging credits

Germany's economy minister wants to boost electric car sales by offering €1,000 ($1,050) in charging credits, along with tax incentives.

Robert Habeck said the government wants to make the credits available for publicly accessible charging stations "as an incentive to buy new and used electric cars," according to a paper from his ministry that was published on Thursday by the Funke Media Group newspapers.

The plan also advocates for purchase incentives. For buyers of electric cars with low and middle incomes, a tax incentive should be introduced, allowing a certain portion of the purchase price to be tax-deductible, similar to existing tax benefits for energy-efficient building renovations.

The ministry is also mulling a leasing model to make electric cars accessible to people with low incomes.

Used car market an option

In addition to the purchase of new e-cars, the paper is also looking at the used e-car market.

"In order to boost the used car market, we want to subsidize professional battery checks with €100," it says.

Used, purely electric vehicles equipped exclusively with an electric motor (BEV) make it easier for price-sensitive customers in particular to get started with e-mobility, the paper noted. A professional battery check gives potential buyers certainty about the condition of the used vehicle's battery and thus about its value.

Sales of electric vehicles in Germany have been sluggish for some time. At the end of 2023, the environmental bonus for e-cars was discontinued prematurely due to the budget crisis.