German government will provide another $1.4-billion U.S. in incentives, research and development aid to help fulfill its goal of having one million electric cars on the road by 2020.
German Chancellor Angela Merkel said that it wants Germany to become a leader in the emerging electric car industry, both in terms of production and consumption.
She said that one million electric cars would be cruising on German streets by 2020, and possibly six million by 2030.
The new proposal meant to boost the EV industry will be unveiled Merkel’s Cabinet this week.
The proposal will not recommend direct cash rebates to customers buying electric cars, which remain far more expensive than conventional cars.
The German government will nevertheless try to encourage sales by other means.
Any car emitting less than 50 grams of CO2 per kilometer would be exempt from road tax for 10 years. The government will also reform the way company cars are taxed to give electric cars an advantage. Electric cars would also be allowed to use bus lanes in towns, while some parking and charging would be free.
The chancellor acknowledged that 10 percent of government’s hiring or buying of cars would involve electric cars.[source: Pure Green Cars, German Government]