During a top meeting between officials from both governments, the Chinese party told German ministers that they need to push for electric-car incentives in order to boost the demand for green vehicles.

Offering financial stimulants for those who plan to buy electric cars will definitely encourage the demand for environmentally friendly vehicles, as the technology is still expensive and the acquisition price is not very encouraging. China started to offer support for private and commercial electric vehicles back in 2012, helping electric-sales to gain speed. “Incentives are very important for research and development and that creates market maturity very quickly,” said China’s Science and Technology Minister Wan Gang, who met Germany’s government ministers this week in Berlin. The demand for such vehicles jumped last year by more than three times in China, to hit 331,092 environmentally friendly cars in 2015, while the world’s biggest auto market aims to have five million alternative-fueled vehicles on the roads by the end of the decade.

On the other part, Chancellor Angela Merkel has set a goal for Germany to have one million hybrid and battery plug-ins on the road by 2020. At the start of year, there were around 130,365 hybrids and 25,502 electric cars registered in the country, according to data from the Federal Motor Transport Authority. The German government is debating for some months now a strategy to surge the sales of electric cars. Vice Chancellor Sigmar Gabriel wanted to assign about 2 billion euros (2.2 billion dollars) in cash rebates for the plan, pushing for about 5,000 euros (5,700 dollars) per car until 2020, but the Finance Minister Wolfgang Schaeuble opposed to the strategy, considering the financial implications for around 1 million asylum seekers.

Via Bloomberg


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