Germany will offer families with small and medium incomes subsidies of up to $7,000 to buy new electric cars, newspaper Bild reported on Friday, in a bid by Berlin to revive sluggish sales of one of the country’s key industries.
German carmakers are struggling with the transition to electric vehicles, experiencing significantly lower demand than initially expected.
The government is planning new subsidies of between 1,500 and 6,000 euros (US$1,700-US$7,000), Bild reported, citing the Environment Ministry. There was no mention in the Bild report of any local production requirements for the subsidy.
Applications can be submitted retroactively for new registrations from January 1, the report said, adding that a website for applications is expected to go live in May.
“The funds are sufficient for an estimated 800,000 vehicles over the next three to four years,” Environment Minister Carsten Schneider was quoted as saying by Bild.
The Environment Ministry declined to comment on the Bild report.
Schneider was set to hold a press conference on Friday morning to lay out the details of the plans.
His ministry postponed the announcement until Monday, without giving a reason.
