Following the termination of the German state-funded scheme for electric vehicle (EV) buyers, automotive giants Audi, Mercedes-Benz, Stellantis (NYSE:STLA), and the Volkswagen have stepped up to start their own subsidy programs.
Despite their efforts to support EV purchasers, these manufacturer-backed incentives are set to conclude well before the previously intended end date of the state scheme, which was scheduled to run until the end of 2024.
The Economy Ministry suspended the seven-year program on Monday as a consequence of revising the 2024 budget. The move was necessitated by a court ruling that created a 60 billion euro ($65.77 billion) deficit in their projected funds.
This initiative had provided grants of up to 6,750 euros, jointly funded by the government and car manufacturers, contingent upon the electric vehicle's value.
Volkswagen announced on Tuesday its commitment to cover the entire 6,750 euro subsidy for private customers in Germany who placed orders for eligible vehicles from the all-electric ID. lineup before December 15.
For cars registered between January 1 and March 31, Volkswagen indicated a reduction in the subsidy to 4,500 euros, in accordance with the pre-planned reduction in the subsidy program.
Similarly, Audi, a part of the Volkswagen Group, pledged to cover the full subsidy for vehicles ordered before December 16, with delivery scheduled by year-end.
Mercedes-Benz followed suit, stating its intention to cover the full subsidy for orders fulfilled and registered between December 18 and 31. From January onward, Mercedes-Benz plans to contribute its share to the subsidy.
Stellantis, on Monday, confirmed its commitment to cover the entire subsidy until December 31. Following this date, a reduced subsidy will be provided for vehicles registered by February 29.
Shares of STLA are down 0.63% in early trading on Tuesday.