The country’s federal government had to put on hold its upcoming strategy to buoy the deliveries of batter-operated electric cars as the planned corporate tax breaks were not supported by all state governments, fearful their tax incomes would take a hit.
The Berlin government of conservative Chancellor Angela Merkel has been mulling for years to put one million electric cars on German roads by 2020, but many critics and industry experts believe the goal is close to unachievable. Many executives even said the unrealistic goal could only be achieved if the government takes into account the sales of near electrics, such as plug-in hybrid cars. Back in December, the current cabinet supported the country’s ambitious targets of fighting global climate change by reducing Germany’s annual CO2 emissions by up to 78 million tones by 2020. As part of the strategy, the governing coalition of Christian Democrats and Social Democrats also announced measures that would have allowed corporate buyers of electric cars offset half the price of the vehicle with corresponding tax amounts.
Now, a government official has told Reuters the plan was put on hold, confirming recent German media reports. One of the reasons the strategy had to be iced was that Merkel’s government couldn’t reach consensus with the state governments that would have lost most of the money because of the lower tax revenue. While Germany is the largest single market in Europe and the country’s automakers are proponents of electric car production, customers have not responded positively to such models, citing as reasons the high acquisition costs, lack of recharging infrastructure and range anxiety.