SKIM Study on E-Car Bonus: Money Isn't Everything - Charging is More Important

The consulting firm SKIM conducted an extensive global study on the attitudes and understanding of German car buyers towards electric vehicles, which strongly relativizes the importance of the environmental subsidy when purchasing an electric car. The study reveals interesting perspectives on the incentives that should encourage more consumers to opt for electric vehicles instead of combustion engine cars. Starting from January 2023, the German government will gradually reduce its subsidies. Against this backdrop, the SKIM study found that only one in six Germans (15%) considering an electric car as their next vehicle sees government incentives on the purchase price as the main reason for switching. The study shows, on the other hand, that free installation of a home charging station would be the biggest incentive for purchasing an electric vehicle. 57 percent of respondents indicated this as their top priority.

Free charging would be more important than an electric car subsidy

In addition to home charging, free charging at public parking spaces was also seen as a more important incentive than a subsidy or a discount on the purchase price. Half (49%) consider free public charging as a desirable option. In fact, in the SKIM survey, more respondents indicated that a 10% discount on domestic electricity consumption (31%) or exemption from vehicle tax (39%) would be an incentive for them than respondents wanting a subsidy at the time of purchase. Continued government investment in public charging infrastructure is welcomed, and as the survey data also shows, charging remains one of the biggest barriers to the acceptance of electric vehicles. This suggests that more incentives for the installation of home charging stations would help empower consumers, as this could lower the emotional barriers to electric vehicles – especially as long as the market for the installation of home charging stations in Germany remains complex with numerous providers and different offers, and trained electricians are often in short supply.

If the ramp-up is to continue, subsidies must become more precise

The record number of newly registered electric cars before the reduction of financial incentives is indeed a promising development, but if the German government and car manufacturers want acceptance to continue to grow rapidly in 2023, subsidies should be optimized, according to further findings. It is clear that taxpayers' money could be better aligned with customer needs and hence used more cost-effectively.

The first SKIM study on this topic highlights how different the understanding is of what is being offered to new car buyers as an incentive and which incentives would best meet their needs when switching from fossil fuels to electric drive. This leads to the acceptance of electric cars being more hesitant than it could be, according to the analysts. Many potential electric car drivers decide against an electric vehicle due to obstacles that could be removed – often at no additional cost to the government, the authors argue. This study was conducted by the consulting firm in 2022 as part of an online global survey. The sample size was n = 2,373 respondents who were interested in purchasing a new car.