The incentives program comprises EUR1.2 billion, with half the budget drawn from federal governments funds and with the other half of the total being contributed by the OEMs. Buyers of full EVs will be given a contribution EUR4,000, while plug-in hybrids purchases will be subsidized by EUR3,000. As things stand it is only OEMs that have committed to contributing their share of the 50 percent to the fund. At the moment these companies include VW/Audi, BMW and Mercedes-Benz although it is possible more OEMs could be added to this list. The start date for the incentive program is May 2016 and it will continue until the funding is exhausted, or until 2019 at the latest. The funding is structured so that only vehicles with a list price of less than EUR60,000 benefit.

The idea of the German government incentivizing the sales of alternative powertrain vehicles has been on the agenda since 2010 when German chancellor Angela Merkel made an election pledge to have 1 million EVs on the road by 2020.

Source: IHS Automotive