European and American countries tighten electric vehicle subsidies! Companies like Tesla may be affected

European and American Nations Tighten Electric Vehicle Subsidies, Potentially Impacting Companies Like Tesla

【PhoneAuto News】Recently, PhoneAuto learned that the German government has announced the termination of electric vehicle subsidies, which comes as a blow to companies like Tesla, Volkswagen, BMW, and Stellantis. Facing a budget crisis, the German coalition government ended the “environmental bonus” program on Sunday, instead of the originally planned deadline of December 31st. France is also tightening restrictions on electric vehicle subsidies. As of December 15th, France has actually capped electric vehicle subsidies for European-made electric cars at a maximum of 7,000 euros. Additionally, starting from January 1st next year, the base rear-wheel-drive and long-range version of the Model 3 will lose a $7,500 tax credit due to strict battery procurement restrictions under the US “Inflation Reduction Act.”

Automotive research center analyst Ferdinand Dudenhoeffer warns that this decision could have serious consequences, as “the competitiveness of car manufacturers will be severely damaged.” German newspaper “Handelsblatt” also warns that canceling the program could jeopardize Germany’s goal of getting 15 million electric cars on the road by 2030. “Previously, this goal was already considered extremely unrealistic. And now, it seems that this goal is nothing but a fantasy.” According to data from the German Ministry of Economy, the program has paid out approximately 10 billion euros in subsidies to around 2.1 million electric vehicles since 2016.

In the backdrop of a global economic slowdown and weak demand, the German automotive industry has been striving to adapt to the transition to electric vehicles. Additionally, in the important Chinese market, domestic competitors pose a serious challenge to German car manufacturers.

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Dudenhoeffer states that the Chinese are rapidly expanding their automotive industry, thanks to their large customer base. In stark contrast, our manufacturers are facing the challenge of losing customers.

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