Germany does it right and increases EV Incentives

BERLIN -- Chancellor Angela Merkel's government and German automakers agreed to increase cash incentives for electric cars as they attempt to accelerate the transition away from the combustion engine.

A so-called "Environment Bonus" for battery-powered cars priced up to 40,000 euros will be raised by half to as much as 6,000 euros ($6,680) per vehicle and the auto industry will continue to cover half the cost.

The subsidy means that a midrange version of VW's new ID3 battery-powered hatchback will cost around 24,000 euros to 25,000 euros in Germany, analysts Evercore ISI said in a note to investors.

Germany is closing in on Norway for European leadership with sales of almost 53,000 full-electric cars this year, according to the KBA federal motor transport authority.

Merkel's chief spokesman, Steffen Seibert, said it will be possible "to provide support for another 650,000 to 700,000 electric vehicles."

Source: Automotive News Europe