Electric-Car
Subsidies Make Renaults Free in Germany
Subsidies Make Renaults Free in Germany
By Elisa Miebach and Stefan Nicola
Deals spring up
across Europe as countries boost support
across Europe as countries boost support
Countries in region
offer among the biggest subsidies globally
offer among the biggest subsidies globally
What Goes Into an Electric Vehicle
Car buyers in Europe can now get their hands on a brand-new
electric vehicle for less than the typical cost of a mobile-phone contract.
Thanks to newly generous subsidies, some are even free.
electric vehicle for less than the typical cost of a mobile-phone contract.
Thanks to newly generous subsidies, some are even free.
Shoppers have swarmed virtual showrooms in Germany and
France -- the region’s two largest passenger-car markets -- after their
national governments boosted electric-vehicle incentives to stimulate demand.
Their purchase subsidies are now among the most favorable in the world,
according to BloombergNEF.
France -- the region’s two largest passenger-car markets -- after their
national governments boosted electric-vehicle incentives to stimulate demand.
Their purchase subsidies are now among the most favorable in the world,
according to BloombergNEF.
The state support is allowing Autohaus Koenig, a dealership chain with more than 50 locations
across Germany, to advertise a lease for
the battery-powered Renault Zoe that is entirely covered by subsidies.
In the 20 days since it put the offer online, roughly 3,000 people have
inquired and about 300 have signed contracts.
across Germany, to advertise a lease for
the battery-powered Renault Zoe that is entirely covered by subsidies.
In the 20 days since it put the offer online, roughly 3,000 people have
inquired and about 300 have signed contracts.
“If we had more sales staff, we would have sold even more,”
said Wolfgang Huber, head of electric-car sales for the dealer in Berlin, who
published a Facebook post asking customers to be patient. “We did expect an
increase in sales with the subsidies, but this run really struck us.”
said Wolfgang Huber, head of electric-car sales for the dealer in Berlin, who
published a Facebook post asking customers to be patient. “We did expect an
increase in sales with the subsidies, but this run really struck us.”
Chancellor Angela Merkel and President Emmanuel Macron have
sought to soften the coronavirus pandemic’s blow to the badly hit car sector.
Sales in Europe have recovered more slowly in Europe than in China or North
America, pressuring policy makers to support major sources of employment and
economic activity.
sought to soften the coronavirus pandemic’s blow to the badly hit car sector.
Sales in Europe have recovered more slowly in Europe than in China or North
America, pressuring policy makers to support major sources of employment and
economic activity.
In France, sales of Renault’s Zoe model are on track to
double this year even as demand for gasoline vehicles has cratered. And in the
Netherlands, where the city of Amsterdam is banning non-electric cars from
2030, a 10 million-euro ($11.4 million) fund to support EV purchases was
used up in just eight days this month.
double this year even as demand for gasoline vehicles has cratered. And in the
Netherlands, where the city of Amsterdam is banning non-electric cars from
2030, a 10 million-euro ($11.4 million) fund to support EV purchases was
used up in just eight days this month.
“There are a lot of attractive offers right now because of
higher subsidies, and that’s boosting demand,” said Aleksandra O’Donovan, an
analyst with BloombergNEF. “The EU is pushing toward decarbonizing transport,
and the coronavirus crisis has allowed them to accelerate that.”
higher subsidies, and that’s boosting demand,” said Aleksandra O’Donovan, an
analyst with BloombergNEF. “The EU is pushing toward decarbonizing transport,
and the coronavirus crisis has allowed them to accelerate that.”
Germany’s subsidies of as much as 9,000 euros per
electric vehicle have boosted sales for Carfellows, a German auto-trading
website, about tenfold.
electric vehicle have boosted sales for Carfellows, a German auto-trading
website, about tenfold.
“This is a golden moment
for us,” said Rainer Westdoerp, a spokesman for the Berlin-based startup, which
on Wednesday will start offering leases of Daimler AG’s battery-powered Smart
EQ for 9.90 euros a month.
for us,” said Rainer Westdoerp, a spokesman for the Berlin-based startup, which
on Wednesday will start offering leases of Daimler AG’s battery-powered Smart
EQ for 9.90 euros a month.
Carfellows took down a similar offer for the Smart model in
June after about 1,000 customers reached out within three days and the
automaker couldn’t supply cars fast enough, Westdoerp said.
June after about 1,000 customers reached out within three days and the
automaker couldn’t supply cars fast enough, Westdoerp said.
While the best deals
-- including Carfellows’s Smart offering -- are usually for buyers of company cars because of perks including
tax and risk rebates, private drivers in Germany can still lease an
electric car from the site for as little as 39 euros a month. In France, where the government raised
subsidies to 7,000 euros per car this year, customers can lease the Zoe from
79 euros a month.
-- including Carfellows’s Smart offering -- are usually for buyers of company cars because of perks including
tax and risk rebates, private drivers in Germany can still lease an
electric car from the site for as little as 39 euros a month. In France, where the government raised
subsidies to 7,000 euros per car this year, customers can lease the Zoe from
79 euros a month.
Buyers will have to read
the fine print, as some offers come with additional one-time fees or
down payments. And not everyone in Europe is spending more to speed up EV
adoption, with the U.K. and Belgium recently cutting aid. China had planned to
end its subsidies this year but extended them to 2022 in response to the
pandemic.
the fine print, as some offers come with additional one-time fees or
down payments. And not everyone in Europe is spending more to speed up EV
adoption, with the U.K. and Belgium recently cutting aid. China had planned to
end its subsidies this year but extended them to 2022 in response to the
pandemic.
But in general, the picture looks attractive for European
buyers as the continent is home to eight of the nine countries with the largest
national purchasing-subsidies, according to BNEF.
buyers as the continent is home to eight of the nine countries with the largest
national purchasing-subsidies, according to BNEF.
Governments will have to weigh carefully when to let those
subsidies run out to avoid sales falling off a cliff. But there will come a
time when that won’t be a concern anymore, O’Donovan said.
subsidies run out to avoid sales falling off a cliff. But there will come a
time when that won’t be a concern anymore, O’Donovan said.
“The decreasing price of batteries suggests that EVs should be cheaper to buy than gasoline
cars from the mid-2020s,” she said. “Once that happens, the market will
accelerate even without subsidies.”
cars from the mid-2020s,” she said. “Once that happens, the market will
accelerate even without subsidies.”
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