German Chancellor Angela Merkel’s government is edging toward tax incentives for electric cars after months of arguing over how to boost sales of the vehicles in Europe’s biggest economy.
Germany has pledged a million electric vehicles by 2020 and decision to opt for tax rebate or cash incentives is due soon otherwise the target would be missed by a big margin.
Merkel hinted last month that she may back subsidies to reach her goal of one million electric cars on German streets by 2020.
This could be difficult to fulfill as finance minister Wolfgang Schaeuble sets aside Germany’s federal budget surplus to care for some one million refugees who arrived last year.
Just over 30,000 electric vehicles have been sold in Germany, out of more than three million cars bought annually in a country that has historically used diesel technology to reduce emissions.
The industry sees incentives as a potential game changer due to the size of the German market, which accounts for nearly a quarter of all auto sales across Europe.
Other countries are offering more generous incentives to force the change to electric cars.
Auto executives point to France, where the government last year started offering a 10,000 euro rebate to drivers trading in diesel-powered cars older than 14 years.
In Norway, electric cars enjoy a variety of perks.
There’s no value-added tax on purchases nor a one-time fee imposed on regular cars.
There is also free battery charging, free parking and an exemption from congestion charges.
On top of that, electric-car owners are allowed to drive in bus lanes to avoid traffic.
In the US, buyers can claim a federal tax credit of as much as $7,500.
Electric cars have not come yet to the Gulf region, but a set of incentives put in place is likely to encourage dealers to import them and customers to buy them.
Free charging points and free parking are a good start to get electric cars adopted in the Gulf region.
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* Adel Murad is a senior motoring and business journalist, based in London.
Email: [email protected]
