German government is set to double existing subsidies to €6,000 ($6,720) on electric cars that cost up to €40,000 ($44,800). This is expected to benefit automobile manufacturers to sell vehicles that are better for the environment.
The subsidy is expected to help Germany recover from effects of the coronavirus pandemic. The proposed subsidy budget is €2.2 billion ($2.5 billion). Automobile manufacturers and their suppliers will receive another €2 billion ($2.2 billion) to assist research and development.
German finance minister Olaf Scholz said that this was part of a broader effort to improve the climate. “This is about renewable energy. This is about initiative which will help us become carbon neutral economy by 2050. We have started now”.