The budget crisis in Germany, triggered by the decision of the Constitutional Court last November, continues to make waves, this time directly affecting the automotive sector. Germany’s Constitutional Court then reversed the redistribution of unused pandemic loans to green investment and industry support, leaving the German government in a delicate financial situation, to say the least.

This was recently reported by the Ministry of Economy Credits for the purchase of electric vehicles will no longer be accepted after the Sunday following this announcement. The move drew mixed reactions, but a ministry spokesman emphasized that it was a necessary step because available funds were no longer sufficient to satisfy requests after this deadline.

What are the implications for the automotive industry?

Abolishing the bonus could jeopardize Germany’s goal of putting 15 million electric cars on the road by 2030, which is already considered unrealistic.

Since 2016, 10 billion euros have been allocated for the purchase of about 2.1 million electric vehicles. The withdrawal comes at a critical time as German manufacturers struggle to adapt to the transition to eco-mobility amid a weakening global economy and sluggish domestic demand.

And the bonus in France?

In France, in 2024, the environmental bonus will be in effect, as we recently informed you on Auto Plus. On the other hand, recall that the government has decided to revise the contours of the bonus rules for 2024, including more precise, even protectionist criteria, even if it refuses to use the term. This new version of the environmental bonus lies in its focus on vehicles with the best carbon footprint.

Various environmental criteria are taken into account, such as the materials used, the type of battery, the energy consumption of the factory and the impact of vehicles. In other words, this measure is aimed at ending the production of cars made in China, such as the MG4 or the Tesla Model 3.

But can the bonus, at least under these conditions, continue? No chance, at least in the coming years. It is hard to imagine the French state (and by extension the taxpayers) subsidizing electric cars that intend to spread over the years, especially with the advent of “affordable” electric models such as the Renault 5 E-Tech or the Citroën ë. -C3.

Read also:
ZFE: According to some, they would benefit the auto industry
ZFE radars: how to spot them accurately?
ZFE: What is the future impact on our way of life?