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Germany announced the early end of the electric vehicle subsidy, which was originally planned to be implemented by the end of 2024.

2024-05-23 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)12/24 Report--

CTOnews.com December 18 news, the German Ministry of Economy announced that in order to cope with the budget gap, the original plan to implement the electric vehicle subsidies until the end of 2024 will end ahead of schedule, the subsidies already approved will continue to be issued, but from today no new applications will be accepted.

Germany's economics ministry says it has paid around € 10 billion (CTOnews.com notes: currently around RMB77.8 billion) in subsidies for around 2.1 million electric vehicles since 2016, and that Germany has just lost € 60 billion (currently around RMB466.8 billion) in state budget, forcing the government to cut spending on some green transition programs.

Last month, Germany's Supreme Court ruled that the government violated constitutional debt rules in transferring 60 billion euros of funds for the epidemic to the climate fund, a ruling that created a huge hole in Germany's national budget, and then after weeks of discussions after passing the 2023 emergency budget, the German government finally reached a budget agreement for 2024 last Wednesday.

A spokesman for the Ministry of Economy admitted that this was an "unfortunate situation" for consumers hoping to get subsidies, but that they had no choice "because there was not enough money."

Ferdinand Dudenhofer, an analyst at the Centre for Automotive Research, warned that the decision could have dramatic consequences. Germany's Handelsblatt newspaper also warned that canceling the plan could jeopardize Germany's goal of "15 million electric cars on the road by 2030."

"Business Daily" bluntly said: "This goal has been very unrealistic. Now it seems to be a complete fantasy. "

The industry believes that Germany, as a leader in automotive manufacturing, has been struggling to cope with the challenge of "how to transition to electrification" due to the weak global economy and sluggish demand, coupled with challenges from the United States and Chinese car companies (China is also one of the most important markets for German car companies), they have to find better solutions.

"The Chinese are massively expanding their car industry because they have customers and our [car] manufacturers don't have any customers anymore," Dudenhofer points out. "

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