Electric Vehicle

Germany: $147B stimulus for economy, EV to benefit

The German government is moving ahead stimulus package to support the industry sustain COVID19 impact. The US$ 147 billion package is a combination of economic stimulus and support for future technologies.

The stimulus package includes reform of motor vehicle tax. From January 2021, owners of cars with emissions of more than 95 grams of Co2 will pay more taxes. Germany is also increasing the incentive on purchase of electric vehicles and hybrid cars. The German government will now pay a grant of $6,800 for an electric car. In addition, car manufacturers will grant a subsidy of $3,400. Germany automobile industry had requested to incentivise vehicles with internal combustion engines also. But, it was rejected by Angela Merkel, Germany’s Chancellor.

The German government also plans to have all fuel stations to provide EV charging. Germany is adding an additional $2.8 billion to its existing program to build charging stations and support battery cell production. It’s also cutting the country’s VAT from 19% to 16% for the second half of the year.

The program earmarks $56.6 billion for the future with tax breaks for research in quantum computing and artificial intelligence. Officials also stated the use of hydrogen power and better promotion of electric vehicles will be increased.

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