Germany to introduce stricter requirements for plug-in hybrid subsidies

The government’s new eligibility requirements will make it harder for people to access a government subsidy on the purchase of a plug-in hybrid car, news agency dpa reports. The new draft law by the energy ministry (BMWi) significantly increases support payments to e-car buyersr, but plug-in hybrids will only be eligible for subsidies if they have a longer range when driving in purely electric mode (over 60 km as of October 2022 and over 80 km as of 2024). Plug-in hybrids combine an electric drive with a combustion engine and under the current rules must either meet a certain CO2 emission value or have a minimum electric range. Climate activists have criticised the subsidies for plug-in hybrid vehicles, because many are driven almost exclusively in combustion-engine mode.

The German Association of the Automotive Industry (VDA) and the Association of International Motor Vehicle Manufacturers (VDIK) warned that the ramp-up of electromobility could be slowed down by the stricter requirements, dpa reports. VDIK president Reinhard Zirpel said the new rules would mean that about 50 percent of the plug-in hybrids sold by VDIK members would no longer be eligible for subsidies.

In the first half of 2021, the government subsidised more than 270,000 vehicles with the buyers’ premium and paid out around 1.32 billion euros. The support payment amounts to 9,000 euros for purely electric cars (€6,750 for plug-in hybrids) with a list price of under 40,000 euros and 7,500 euros (€5,625) for more expensive models. The scheme – with the new rules for plug-in hybrids – is to be extended till 2025.