Germany has kicked off a subsidy program to accelerate the adoption of electric vehicles, regardless of where they were made, according to the Financial Times.
The 3 billion-euro ($3.5 billion) fund will offer up to 6,000 euros (over $7,000) on purchases or leases of new electric vehicles and hybrids. The program picks up where the last one left off at the end of 2023. The fund should be enough to cover 800,000 vehicles, including those made in China. The program is also expected to "strengthen German and European industry," per the report.
"I can't see this widely supposed major influx of Chinese car manufacturers into Germany, neither in the numbers nor on the roads, and that's why we're facing up to the competition and not imposing any restrictions," said German environment minister Carsten Schneider, per the Financial Times.
Germany isn't alone in opening the doors to Chinese EVs. Canada recently lowered tariffs on Chinese EVs, a move that could impact the North American auto sector, given the momentum of China's electric vehicle manufacturing. Lower price points on Chinese models have led other countries, such as Mexico, to propose high tariffs on imports.
EVs are a great upgrade simply because they're cheaper to run than conventional cars, but the benefits extend well beyond saving a few bucks. By eliminating tailpipe emissions, electric vehicles reduce atmospheric pollution, which is exacerbating destructive weather patterns. Property owners worldwide end up picking up the bill for this increase in natural disasters.
Germany's renewed EV subsidies are retroactive to the start of this year and run until 2029. Industry groups welcomed the program but indicated the need for other kinds of investment.
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"The focus must remain on improving the framework conditions, particularly in the area of charging infrastructure, including the associated power grids, and reducing charging prices," said German Association of the Automotive Industry President Hildegard Müller, per FT.
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