Germany's electric vehicle stimulus to extend until 2025

Germany has announced its electric vehicle subsidies will be extended until 2025.

Back in July, the government doubled incentives for the purchase of electric cars which included a €3,000 bonus for electric cars and a  €2,250 bonus for hybrids costing less than €40,000.

This was originally set to expire in 2021, but the new scheme will extend this for a further four years.

The government is considering scrapping the incentives for hybrids in 2022, likely in an attempt to phase them out entirely.

The government recently announced a €2 billion stimulus for the auto sector to be gradually given out until 2024.

The money will go towards revolutionising the production line for vehicle manufactuers in line with Industry 4.0 concepts, as well as aiding in the transition to greener engines.

This marks the second stimulus scheme for the automotive sector after a planned €5 billion scheme which was eventually scrapped.

The Bundestag is also mulling plans for a scheme to scrap old trucks, which is currently awaiting approval ahead of the Berlin automotive summit.

Electric vehicle regstrations in Germany increased by 1.8% in 2019 alone.

The sales of EVs are expected to take up significant market shares within a few decades as many companies and nations incentivise to switch to greener transport.

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