Germany Invests 1.2 Billion Euros to Actively Promote the Development of Electric Vehicles

Recently, the German government has set a goal of reaching 1 million electric vehicles in the country by 2020. However, as of the end of 2015, the total number of electric vehicles registered in Germany was less than 50,000. Among the 45.1 million passenger cars registered nationwide, there are only 25,500 electric cars and 130,000 hybrid cars. In order to promote the development of the electric vehicle market, the German government announced on April 27 that it will provide a subsidy fund for electric vehicles totaling 1.2 billion euros (approximately 1.4 billion U.S. dollars), half of which will be paid by the German government and the other half provided by manufacturers .

Not long after the plan was announced, some local politicians expressed dissatisfaction, believing that German automakers would be the biggest winners from this plan, with the government giving subsidies to those who were already very wealthy and could afford to buy cars. According to EU regulations, this program is suitable for all electric car manufacturers in Europe, but the car price must be less than 60,000 euros. Because the cost of Tesla's electric vehicles is too high and does not meet the program standards, it is not included in the policy. Its just-launched third-generation model will meet the program conditions after it officially lands in Germany in the future.

According to "Forbes" new energy experts, Germany's high-end car brands, such as BMW, Mercedes-Benz, Audi and Porsche, have recently been under tremendous pressure to meet the strict fuel consumption targets set by the European Union. The EU requires that average carbon dioxide emissions be reduced to 130 grams per kilometer by 2015 and to 95 grams per kilometer by 2021 (exhaust pipe emissions reach zero). The 2015 target was completed in 2013.

It is understood that the EU has required that by 2015, the average fuel consumption of EU cars should be 43 miles (about 69 kilometers) per barrel of oil. Judging from the current data, the consumption is much higher than this indicator. In addition, the European Union also requires that by 2021, the average vehicle consumption will be 57.4 miles per barrel of oil; the United States requires that by 2025, the average vehicle consumption will be 54.5 miles per barrel of oil.

A report released by consulting firm PAConsulting in December last year showed that BMW and Volkswagen are likely to be fined US$1 billion each for violating EU fuel economy regulations. Other automakers, including Jaguar Land Rover, South Korea's Hyundai and Kia, could face hefty fines. The report states that in order to achieve emission reduction targets, all car manufacturers producing in Europe must significantly increase the proportion of electric vehicles and hybrid electric vehicles.

"According to our calculations, in order to meet the target, by 2021, electric vehicles will account for 25% of the vehicles listed in Europe by BMW, Audi, and Volkswagen." PAConsulting said.

It is reported that without government subsidies to stimulate electric vehicle sales, German automakers can only raise funds on their own and increase publicity efforts to advise customers to buy electric vehicles. Judging from the current cost price, the cost of electric vehicles is twice that of ordinary cars.

“The electric vehicle subsidy program launched by Germany has made a great contribution to its goal of reducing carbon dioxide emissions.” Peter Schmidt, editor-in-chief of British Automotive Industry Data, said, “If manufacturers like BMW and Mercedes-Benz do not sell enough electric vehicles or hybrid vehicles, "For electric vehicles, it will be difficult for them to meet the EU's 2021 average fuel consumption target, and they will face huge fines."

Data released by the German government shows that each electric vehicle sold in the future will receive a discount of 4,000 euros, and plug-in hybrid electric vehicles will receive a discount of 3,000 euros. When the program begins, each electric vehicle will receive a subsidy of 5,000 euros, plus a 25% subsidy provided by the manufacturer. In addition, Germany has allocated 300 million euros to strengthen the construction of electric vehicle charging network facilities and allocated 100 million euros to government departments to support the purchase of electric vehicles.

Currently, the total number of electric vehicles on the road in Germany is about 30,000. Schmidt said that with the stimulation of subsidy programs, the number of electric vehicles on the road in Germany may reach 500,000 by 2020.

It is understood that most countries in Europe subsidize electric vehicles. France provides a subsidy of 10,000 euros for households that have used diesel vehicles for more than 14 years when purchasing electric vehicles; the amount of the British electric vehicle subsidy is similar to that of Germany; and in Norway, which is rich in oil resources, the purchase of electric vehicles is tax-free, and all There is no need to pay parking fees in the city, and you can freely enter and exit parking lots where ordinary cars are prohibited.

The two largest sellers of electric cars in Europe are currently Renault Zoe and Nissan Leaf. Volkswagen now only offers pure electric vehicles and small family sedans. BMW's i3 series accounts for less than 1% of the Western European electric vehicle market.