Excitement Over Germany's EV Ambitions Fades

Back at the beginning of May, Germany was in celebration over the launch of the country's National Electric Mobility Platform (NEMP). All that enthusiasm and excitement have now faded away, as most carmakers in the industry start questioning the future of the plan.

Germany intends to become the leader of the international electric mobility market and have one million electric vehicles on the country's roads by 2020. Unfortunately, that target is sabotaged by German government itself, as Chancellor Angela Merkel refused to subsidize electric-car purchases.

Most automotive players, including Daimler, support the implementation of the incentives, as does the German auto industry association, VDA. But while the carmakers outspokenly support incentives, the VDA only asks the government to look into "market incentive systems in an international context."

According to a VDA policy paper made public by Automobilwoche, VDA is aware EVs "will be much more expensive than conventional powertrains, even in the middle term," and asks for incentives as a means to boost sales.

"Today, the additional cost for a midsize vehicle comes to about 15,000 eurosand this can be reduced to 10,000 to 7,000 euros in the middle term."

So far, the German government has only approved what may be called "perks" for EV owners and manufacturers. Among them, free parking in inner cities and the possibility for EVs to use bus lanes, as well as development funds for some 190 EV-related projects.