Here’s good news for electric car lovers in Germany and France. You can now get a brand-new electric vehicle at an unbelievable rate.
Pay less than the typical cost of a mobile phone contract and drive your dream car. In some cases, you don’t even have to pay at all. All thanks to the newly generous subsidies.
The virtual showrooms in France and Germany have flooded with car-buyers. All this started when the national governments of France and Germany, Europe’s two largest passenger car makers, boosted the electric vehicle incentives to generate demand.
BloombergNEF has listed Germany and France’s purchase subsidies among the most favorable markets in the world right now.
Autohaus König, a car dealership chain with more than fifty locations across Germany, is allowed to advertise an EV lease, for the battery-operated Renault Zoe, covered entirely by the subsidies.
When the offer hit the market, in the first twenty days, the companies received 3000 inquiries and signed 300 contracts.
In Berlin, Wolfgang Huber, head of electric-car sales for a dealer, said that if we had more sales staff, we would have sold even more. He also published a post on Facebook, requesting the public to stay patient.
He also said that we did expect an increase in sales with the subsidies, but this run stuck us. Hence, they expected the response, but not this high.
Here is a little background on this story.
Covid-19 has badly hit all the markets. The car sector also went down. To soften the coronavirus’s blow to the badly damaged vehicle sector, President Emmanuel Macron and Chancellor Angela Merkel sought new ways.
The market recovery is slower in Europe than in North America and China. Hence, policymakers are under intense pressure to support significant economic activity and employment sources.
Despite the cratered demand for gasoline vehicles in France, Renault’s Zoe model sales will double this year. Similarly, in the Netherlands, where the capital is planning to ban non-electric cars from 2030, an $11.4 million (10-million euros) fund to boost and support EV purchases got consumed in less than ten days this month.
According to Aleksandra O’Donovan, a BloombergNEF analyst, there are many attractive offers right now because of higher subsidies, and that is boosting demands. She also added that the EU is pushing towards decarbonizing transport. And the coronavirus crisis has allowed them to accelerate that.