Lower Saxony & Bremen: Economics Minister calls for purchase incentives for electric cars

Lower Saxony & Bremen
Economics Minister calls for purchase incentives for electric cars

10.09.2024, 07:43

The car industry is weakening, Europe’s largest car manufacturer VW is in crisis. The Lower Saxony state government is making proposals to reverse the trend.

Hanover (dpa/lni) – Lower Saxony’s Minister of Economic Affairs Olaf Lies believes that incentives to buy electric cars should help the ailing car industry get back on its feet. A reduction in VAT for electric cars or a tax credit are conceivable, the SPD politician told the “Hannoversche Allgemeine Zeitung”. Last week, Europe’s largest carmaker Volkswagen announced that it would tighten the austerity program at its core brand VW – and did not rule out factory closures.

Lies said that in order to get the car industry going again, the price of electricity would also have to fall. This could be done, for example, by reforming the network charges, he told the newspaper. Meanwhile, the carmaker VW’s electric course should be shaken up. “We are making a dramatic mistake if we believe that we can sit out e-mobility,” said Lies.

Prime Minister also supports promotion

On Friday, Lower Saxony’s Prime Minister Stephan Weil (SPD) had already spoken out in favor of reintroducing the purchase premium for electric cars in an interview with the “Neue Osnabrücker Zeitung”. In his view, this would be “very helpful.” The state of Lower Saxony holds 20 percent of the voting rights in the VW Group. Weil sits on the supervisory board.

Last week, the federal cabinet introduced tax incentives for company cars with electric drives in order to boost sales of electric cars. Demand for electric cars collapsed after the government stopped subsidies. The federal government abruptly ended the so-called environmental bonus in December. The reason for this was budgetary austerity.