New German Government to Revamp Incentives for Electric Cars

New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES
New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES
TT

New German Government to Revamp Incentives for Electric Cars

New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES
New Volkswagen ID.4 electric vehicles are ready for delivery at the automaker's customer center in Wolfsburg, Germany, on March 26, 2021. RONNY ARTMANN/AFP/GETTY IMAGES

Germany's new government said Monday it is extending the country's current system of incentive payments for buyers of electric and hybrid cars for a year but then plans to impose tougher requirements for vehicles to qualify for the support.

The economy and climate ministry that was set up when Germany's new government took office last week said it will only provide payments starting in 2023 for “electric vehicles that demonstrably have a positive climate-protection effect.”

Meeting that requirement will be based, in part, on a minimum distance cars can travel under electric power, The Associated Press.

For the next year, the current system will still apply, making buyers of electric-only cars eligible for incentives of up to 9,000 euros (about $10,200) and qualifying buyers of plug-in hybrids for up to 6,750 euros.

Robert Habeck, Germany’s new economy and climate minister, said the government is trying to ensure "continuity” while it works on a new system.

“We will become more ambitious with support in the future, in order to boost electromobility further and strengthen climate protection," he said.

Habeck is a co-leader of the environmentalist Green party. He is also vice chancellor in the three-party government of center-left Chancellor Olaf Scholz, which took office Wednesday.

The new government wants to have at least 15 million fully electric cars on the road by 2030. It also aims to step up efforts against climate change by expanding the use of renewable energy and bringing Germany’s exit from coal-fired power forward from 2038, “ideally” to 2030.



India to Offer $4-$5 Bln in Incentives for Electronics Production, Weaning Off China

A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole
A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole
TT

India to Offer $4-$5 Bln in Incentives for Electronics Production, Weaning Off China

A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole
A social media influencer uses a phone on the day of the unveiling of Hyundai IONIQ 9, a three-row electric SUV during a Hyundai event in the Hollywood Hills in Los Angeles, California, US, November 20, 2024. REUTERS/Daniel Cole

India will offer up to $5 billion in incentives to companies to make components locally for gadgets from mobiles to laptops, two government officials said, in a bid to bolster the burgeoning industry and wean off supplies from China.
India's electronic production has more than doubled in the last six years to $115 billion in 2024, led by growth in mobile manufacturing by global firms such as Apple and Samsung. It is now the world's fourth-largest smart phone supplier.
But the sector faces criticism for its heavy reliance on imported components from countries such as China.
"The new scheme will incentivize production of key components like printed circuit boards that will improve domestic value addition and deepen local supply chains for a range of electronics," one of the two officials said.
The incentives are likely to be offered under a new scheme expected to be launched in two to three months, said the officials, who asked not to be identified as details of the scheme are not yet public.
The scheme is likely to offer incentives totaling between $4-$5 billion to global or local firms which qualify, Reuters reported.
The plan, designed by the India's electronics ministry, has identified components eligible for incentives and is in its final stages.
The finance ministry will approve the scheme's final allocation soon, the first official added, with the sources expecting it to be launched in the next 2-3 months.
India's electronics ministry and finance ministry did not immediately respond to requests for comment.
India is aiming to expand its electronics manufacturing to $500 billion by the fiscal year 2030, including production of components worth $150 billion, according to the government's top policy think tank Niti Aayog.
India imported electronics, telecoms gear, and electrical products worth $89.8 billion in the fiscal year 2024, with more than half sourced from China and Hong Kong, according to an analysis by private think tank GTRI.
"This scheme is coming at a time when it is critical to promote component manufacturing that will help us aim for a global-scale of electronics production," Pankaj Mohindroo, head of India's Cellular and Electronics Association, said.