The aid seemed the only way to sell electric cars. Germany is demonstrating that we were wrong

Electric car sales do not take off without state aid. And it has logic if we take into account that we are talking about a technology that forces the driver to Make some adaptation And, according to what cars we buy, force him to plan your trips.

The electric car has many advantages. In Spain, with current prices and rates, an electric car can be much cheaper That one of combustion shortly time. In fact, The more trips and kilometers dothe car comes out.

To this we must add the advantages Undoubted for day to day such as the absence of vibrations, of noise, the comfort of having the entire torque to a throttle pedal … but they are advantages that the client has to discover and that it is normal that it does not encourage it when the disbursement will be of tens of thousands of euros.

To foster change, states have focused on giving purchase aid. It is a good way to lower the price and leave it at a cost closer to combustion models, especially when electric were sensibly more expensive than gasoline or diesel.

They are decisions for which the reference countries have opted in the electric car market. He did it Norway, he did (and he does) China And Germany did it. And the German case showed us that without purchase aid, Electric car sales are deflated… or deflated. Because they have grows again.

What if we have been looking at the wrong place?

Direct aid to purchase

At the end of 2023 justice forced Germany to withdraw aids to the purchase of electric cars. The reason is that funds had been diverted to combat the crisis derived from the coronavirus to the promotion of the electric car. Without destiny for that money, the government had preferred to reinvest it in the game of electric mobility.

For justice, this was illegal and therefore I ordered the aid to immediately withdraw. Overnight, aid fell to the purchase that extended to all cars up to 65,000 euros. Last year, in 2024, a reduction in subsidies was already expected but buyers could expect a mattress of 4,500 euros in cars of up to 40,000 euros and 3,000 euros in which a price of between 40,000 and 65,000 euros appears. The help was complemented by manufacturers with 2,250 euros and 1,500 euros, respectively.

That is, savings in the first case could be up to 6,750 euros and in the second of up to 4,500 euros. Figures similar to those we see in Spain with the MOVES III PLANrecently reimputed until the end of the year or exhaust the funds available.

Last year, the fall in electric car sales was considerable. In its first year of direct aid to the purchase, Germany enrolled 27.4% less electric cars. A blow to European accounts with the main electric car market by volume falling from 524,219 tuition from 2023 to 380,609 units enrolled in 2024. By market share, the German electric car fell from 18.4% to 13.5%.

However, everything has changed in these first months of 2025. They collect in Motorpasion than the 17% of cars Enrolled in Germany are electric. Compared to the month of March of last year, 35.5% have been grown and the trend indicates that it will continue to grow. It is very good news because they lack direct aid to the purchase of cars of this type.

What the State is doing is to encourage the purchase of this type of fleet cars. Companies can deduce up to 40% of the value of the car in the purchase of new cars. A decision that has triggered sales since company vehicles reflect 67% of new car registration in Germany.

The strategy is not new in Europe and focuses on the importance of aid beyond lowering the price of cars. In Norway, they stood out that if they have made the electric car Your best selling technology It has been because for years they have given themselves constant subsidies related to the property of the electric car. Not paying some taxes or road toll have been definitive attractive for implementation. Yes indeed, 1.8 billion euros have been raised.

Belgium has been the other great country where the electric car has exploded in sales in recent months. In Belgium they already exceed 30% quota electric car market. Last year, to February 2024, they exceeded 20% market share and in 2022 they barely exceeded 8%.

The secret is in the aids that, again, are given to companies. Depending on income, a company can be deduced up to 100% of the electric car fee. The percentage will fall over the years but prevent maintaining this economic incentive until 2031.

In Bloomberg They explain that in a country where the company car is usually used as an incentive when changing work, promoting the purchase of this type of cars is key to popularize them and reach sectors that did not expect to make the leap for a few years (or did not expect it at all, as one of those interviewed in the article recognizes).

The strategy contrasts with the one we have been carrying so far in Spain. Our country has also joined the delivery of purchase aids but, in addition to not being direct at the time of signing the contract, Each extension It has been a birth. The suspension for two months In the last extension of the Moves III Plan it has been the best example.

Photo | Volkswagen

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