10,000 euros discount for Germany’s cheapest electric car :As EV subsidies disappear, car companies are cutting prices dramatically in Germany, with Dacia,Kia, Mercedes, Renault, Toyota, and VW announcing price cuts for their electric car models(article in German)
by Straight_Ad2258
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translation
In mid-December, the German government abolished the government discount of 4,500 euros for new electric cars overnight. After a brief period of shock, the manufacturers got down to work and offered substantial discounts: **there are now discounts of up to 10,000 euros, for example for Germany’s cheapest e-car. But Kia, Mercedes, Renault, Toyota and VW are also offering plenty of discounts.**
The budget dispute in December had an immediate impact on car buyers: 4,500 euros in state subsidies were cut and subsidies for new e-cars were discontinued with immediate effect. Bad news for all those who wanted to order a car and were already faced with declining subsidies in 2024.
However, the news has also surprised car manufacturers, who are now worried about idle production lines and full car dealerships. In order to counteract the significant drop in demand, some have now promised generous discounts, which will initially apply to orders and registrations until March 31, 2024. These include Mercedes and, most recently, VW. For the first time, it is possible to get hold of both the compact ID.3 and the ID.4 SUV for less than 33,000 euros.
Dacia: 10,000 euro electric bonus on the Dacia Spring
The Dacia Spring is probably the most affordable fully electric car on the European market to date. Following the end of the promotion, Romanians are now coming forward with a 10,000 euro bonus on the Dacia Spring: Dacia’s offer applies to all versions of the Spring available from participating Dacia partners and is limited in time with registration until March 31. You can expect leasing prices to plummet in the near future.
Kia: Premium guarantee also for orders in 2024
At the end of November, Kia Germany already guaranteed payment of the environmental bonus for all private
private orders placed by December 31, 2023. Following the unexpected decision from Berlin, the company has now extended this guarantee until March 31, 2024: private customers who make a binding purchase of a Niro EV , EV6 , EV6 GT or an e-Soul from the vehicle fleet from January 1, 2024 until this date will receive the full environmental bonus in the amount of the previously applicable conditions. According to Kia, only the date of purchase is decisive, not the date of registration.
If the vehicle was still purchased in 2023, the Kia environmental bonus for new cars with a net list price of up to 40,000 euros is 6,750 euros, in line with the previous subsidy amount. For a vehicle with a net list price of 40,000 to 65,000 euros, the subsidy amount is 4,500 euros. For purchases in the first quarter of 2024, participating dealers will grant an environmental bonus of 4,500 euros for all models listed here, as originally planned with the government subsidy. Orders that have already been placed will also benefit from Kia’s assurance, as the entire bonus is also guaranteed here.
Mercedes and Smart continue funding
Mercedes was not long in responding to the German government’s decision: right at the beginning of the year, the Swabians extended the out-of-pocket subsidy for fully electric EQA and EQB vehicles. Buyers will continue to receive the manufacturer’s share of 1,500 euros as well as the state subsidy of 3,000 euros.
The prerequisite for this is that the car is ordered, delivered and registered by January 31, 2024. After February 1, the manufacturer’s share will continue to apply, but the compensation for the state premium will no longer apply.
For private customer vehicles registered by December 31, Smart also took over the full subsidy, consisting of the manufacturer and federal share, which was valid until the end of the year. Private customers who ordered a Smart #1 or #3 by the end of the year and whose registration is due in 2024 will be compensated by Smart for the reduced environmental bonus, including the manufacturer’s share, which originally applied from January 1, 2024. However, Smart will not accept new orders.
Renault gives discount – and lowers prices in some cases
Initially, Renault guaranteed all private customers who were eligible for the bonus according to previous BAFA guidelines and who were registered up to and including December 31, 2023, the full environmental bonus of 4,500 euros. Similar to Dacia, the guarantee only applies to customers who register and schedule their purchase applications up to and including December 17 and register their vehicle between December 18 and 31. For deliveries and registrations between January 1 and March 31, Renault will pay the reduced environmental bonus of 3,000 euros. Specifically affected are the Kangoo E-Tech, Megane E-Tech and Twingo E-Tech.
With the Megane, however, Renault is now taking a completely different approach in the long term: the manufacturer is not just offering a simple discount for a few months on the compact French car, but is also taking a hands-on approach to the price list. The result is the same: you can save up to 6,700 euros when buying a Megane E-Tech. This is Renault’s reaction to the end of subsidies in Germany, following a similar step to Volkswagen.
Still 4,500 euros for Toyota and Lexus
All customers who ordered an eligible electric vehicle from Toyota or its subsidiary brand Lexus received a bonus of up to 6,750 euros, in line with the previous regulations on state subsidies. In addition, the Japanese group offered the bonus to all customers who purchase an electric vehicle from the available stock up to and including December 31, 2023. But both brands are also making good offers in the new year: A total of 4,500 euros off is available for all vehicles that you order and register by March 31, 2024. The offer applies to the Toyota models bZ4x, Proace and Proace City as well as the Lexus UX and RZ. This means that the carmaker has fully implemented the level of support originally planned for 2024.
Volkswagen gives 7700 euros discount on new orders
For all eligible ID. models that private customers have ordered by December 15, 2023 but have not yet taken delivery of and registered, Volkswagen will compensate the federal share in addition to the manufacturer’s share. If these vehicles were still delivered and registered in 2023, customers will receive a subsidy of up to €6,750. For 2024, there is still a reduced subsidy: if delivery and registration do not take place until the new year, namely by March 31, 2024, Volkswagen will pay a bonus of up to €4,500, as originally promised by the German government.
If you still want to order a car now, the Wolfsburg-based company will dig deep into your pockets: in addition to the “e-mobility bonus” of 1785 euros, VW will deduct another 5950 euros “campaign bonus” at the checkout. This is valid for all orders of an ID.4 or ID.5 until March 31, 2024. The SUV costs less than €33,000 with a small battery, while the interesting Pro version with a 77 kWh battery costs less than €41,000. This makes the car even cheaper than a Tesla Model 3 or Y. The ID.3 is also discounted by over 7,000 euros until the end of March and is also available for less than 33,000 euros. The brand new ID.7 has a discount of 4760 euros. The ID.Buzz electric van is still available for 1785 euros.
What if the car had already been ordered?
Many car manufacturers will continue to grant the bonus after the originally planned subsidy level for 2024. In German: 3000 euros discount is available for cars registered before February 29, 2024 at Stellantis with Abarth , Citroën , DS Automobiles , Fiat , Jeep , Opel and Peugeot .
Does the end of premiums mean additional discounts?
Not only e-car buyers, but also the manufacturers have probably relied on the fact that the purchase premium will remain valid for at least a few more weeks or months. In combination with a drop in demand for electric cars this year, vehicle stocks at some manufacturers are currently likely to be high. This means that some manufacturers could possibly offer additional discounts on their electric cars in the coming weeks – but these will hardly be able to make up for the loss of the premium, if there are any discounts at all.
“In our opinion, the budget crisis is driving the car industry in Germany into an electric car crisis,” explained industry expert Ferdinand Dudenhöffer according to a report by Tagesschau (advert). Dudenhöffer expects a decline of up to 200,000 electric car sales in Germany in 2024 next year. The ADAC is similarly critical of the subsidy freeze: in the opinion of the car club, the end of the subsidy comes too soon. Only three vehicles under 30,000 euros are available on the German market, and it is to be hoped that competition will now intensify so that prices fall. “Manufacturers must also increase the range of cheaper vehicles on offer,” an ADAC spokeswoman told the Tagesschau.
Perfect example why subsidies are just bandaid that just forces issues that do not even need to be forced.
How about leaving people more money off of their income So they can afford things instead of giving then innitiative to abuse schemes that they do not perceive as their money?
remains to be seen if the discounts hold up long term,but manufacturers have little excuses
Ev battery prices were down 50% by the end of 2023 in China [https://www.pv-magazine.com/2024/01/04/ev-battery-prices-down-by-50-at-end-of-2023-says-trendforce/](https://www.pv-magazine.com/2024/01/04/ev-battery-prices-down-by-50-at-end-of-2023-says-trendforce/)
EV raw materials such as lithium,nickel,cadmium, have seen dramatic price declines this year ,as production ramps up while demand slows down
**Lithium prices in particular are down 80% since January 2023**
[https://tradingeconomics.com/commodity/lithium](https://tradingeconomics.com/commodity/lithium)
nickel prices are down 50%
[https://tradingeconomics.com/commodity/nickel](https://tradingeconomics.com/commodity/nickel)
as battery manufacturers ramp up production and cut prices, EV manufacturers will get cheaper batteries as well
Well, doesn’t that just throw the entire concept of “subsidies” right into the gutter.
Europe has managed to become this conservative American joke, where we rob Peter to pay Paul GmbH.
Isn’t that like standard today? Calculate the subsidies into the MRP in order to maximize profits and then reduce the MRP when people can’t afford the product without the subsidies in a grand gesture of benevolence. What a fucking farce.
And in France the governement is starting a lease option for specific groups to drive EV’s made in Europe…
https://www.gouvernement.fr/actualite/letat-lance-la-voiture-electrique-a-100-euros-par-mois
I think I will go ahead and finally get me one….
I think the EV incentives should never be an option for the car, the same for hybrids and all because there is no reason for the car manufacturer to not overinflate that price, maybe not for the full price of the subsidy but at least for some and instead subsidise the network or even better have an online platform for people to upload their receipts for charging and at the end of the year they get some of the money back, up to a maximum ammount this too can be abused though where, because people receive money back the electricity provider will double the price or more
As long as most non-Tesla battery packs use cells made by BYD, this is putting money in Chinese pockets….
our government (Flemish) is giving 5000€ in subsidies for EVs but it remains to be seen if the subsidy will be deemed legal. Meanwhile the Germans stop subsidizing and get 10K discounts? What a mess we live in.
Shouldn’t that be illegal?
Anyone else super happy to see the wealth transfer from taxpayers to shareholders in action?
Makes one’s heart pump with emotion from this glorious fuckery.
It’s not a better idea to invest the money in public transport? Especially in trains.
Reminds me of electronic devices discounts a month ago.
Everything was (up to) 70% off, yet the prices were exactly as high as they were a month before that and are now. Couldn’t find the laptop I wanted below $1000 before or after discounts.
Now I don’t follow the price in electric vehicles the same way, but if I had to bet I’d bet that something similar will happen.