In an endeavour to make Germany the world’s leading supplier of green technologies, the German government is promoting investments in areas such as e-vehicles, hydrogen technology and charging infrastructure. These efforts are intended to encourage the switchover from fossil fuels to renewables. Sales figures for e-vehicles are already trending sharply upwards, climbing 365% year on year compared to October 2019.
Attractive electric car vehicle incentives
A maximum of € 9,000 in cash rebates is being made available as an incentive to purchase 100% electric cars, and up to € 6,750 for plug-in hybrid vehicles. On top of this, more expensive cars whose purchase price exceeds € 40,000 are also eligible for stimulus funds. According to a survey conducted with buyers of electric cars, 65% affirmed that these subsidies were the main reason for their purchase. The incentives have just been extended until the end of 2025. In order to receive the premium for plug-in hybrid vehicles as well, vehicles are required to have a minimum electric range of 60 kilometres from 2022 on, and of 80 kilometres from 2025 on.
Expanding charging infrastructure
As part of the stimulus package, the German government is also supporting charging stations for electric cars to a tune of € 2.5 billion. One cornerstone of the new regulations is that all filling stations in Germany are to provide a charging infrastructure. Furthermore, a standardised payment system for charging is being introduced. In addition, additional measures are being planned to keep electricity prices low.
National Hydrogen Strategy
The federal German government has also announced that it will be investing € 9 billion in green hydrogen. The goal is to make Germany a dominant worldwide player in the hydrogen technology. Part of the strategy is to switch from fossil fuels to hydrogen, especially in the steel and chemicals industry as well as in the transports sector. To reach the ambitious targets, new hydrogen production plants are to be developed, while it is also being planned to expand the hydrogen filling station network.
Germany is actively encouraging international companies to get involved, enlist in and become part of this transition. If you are considering starting up a business in Germany, our specialised dhpg Inbound Services team will be pleased to support you with our expertise.