BOCHUM (dpa-AFX) - Industry expert Ferdinand Dudenhöffer has criticized the German government's new electric vehicle subsidy program. He describes it as "a tax-funded subsidy program" that the market does not need, as he emphasizes in his latest discount study, which was made available to dpa in advance. "One could also say it is a waste of taxpayers' money."
Among other things, Dudenhöffer criticizes the income limits for the maximum subsidy as being set too low. "Families with children who have an annual income of 45,000 euros or less typically buy used cars and, if they live in cities, usually have no way to install a wallbox," he says.
Subsidy Could Boost Imports from China
It will now be interesting to see whether the subsidy will lead to an increase in the share of cheap imports – especially from China, he says. "The Ministry of the Environment has created the conditions for this with the subsidy." In particular, German premium manufacturers Audi, BMW, Mercedes, and Porsche, with their comparatively expensive cars, can only watch from the sidelines. "Jobs in the German automotive industry will not be helped by a small special boom in electric vehicles."
At least in January, the announcement of the subsidy has so far not led to major fluctuations in discounts offered for key models on the German market. There had previously been concerns that these discounts might be reduced if the government contributed funds, with manufacturers skimming off part of the subsidy. On average, among the most important vehicles monitored by Dudenhöffer, the discount on electric vehicles even increased slightly last month – currently averaging 19.5 percent. "Apart from a few teaser offers, we could observe little systematic change in the market as a result of the subsidy announcement," he says./ruc/DP/zb
