Innovation premium for BEV and PHEV extended until the end of 2022

Now it's official: As previously indicated, the Federal Ministry of Economics and Technology (BMWI) under the leadership of Robert Habeck (Greens) has now extended the so-called innovation premium for electric vehicles by one year until the end of 2022. Accordingly, the controversial plug-in hybrid vehicles will continue to be subsidized for the time being, with up to 6,750 euros, and pure electric vehicles with up to 9,000 euros. After that, however, the funding is intended to be "significantly more focused on climate protection," according to the ministry. From 2023 onwards, only electric vehicles that demonstrably have a positive climate protection effect will be funded. This will be defined by the proportion of electric driving and a minimum electric range. Work on the new funding design has started immediately with the new government, assures the BMWI.

“We will be more ambitious in our future funding to give additional impetus to electromobility and strengthen climate protection. To this end, we will realign the funding,” announced Economics and Climate Protection Minister Robert Habeck.

Until the new setup, however, continuity will be ensured, and the current innovation premium will be extended until the end of 2022, Habeck continued. The necessary amendment to the funding guidelines for electric vehicles has been agreed upon within the federal government. It will be published in the Federal Gazette at the end of the year and will come into force on January 1, 2022.

VDIK responds positively

In an initial reaction from the industry, Reinhard Zirpel, President of the Association of International Motor Vehicle Manufacturers (VDIK), naturally welcomed the move.

“The electric car purchase premium is of key importance for the success of electromobility in Germany. This creates planning security for customers, dealers, and manufacturers. The previously impending slump in the e-car market can thus be averted,” said the association president.

He also warned, however, against a "too sharp reduction of the environmental bonus in the coming years." In his view, the premium remains "very important for the market ramp-up in the medium term." The reform should be used to eliminate some bureaucratic rules and create long-term planning security, Zirpel said.