The Association of German Car Dealers (VAD) has issued strong criticism of the new electric‑car subsidy scheme.
The President of VAD, Burkhard Weller, told the Editorial Network Germany that the uneven rollout has shaken customer confidence and slowed sales. “It is a disaster how this is being organized” he said.
Because many questions remain unanswered, customers have hesitated, and dealer order volumes are 20 % below the forecast. “The subsidy is clearly not the boost we expected; on the contrary it does more harm than good. We could have avoided this fiasco and invested the three billion euros earmarked for the subsidy into kindergartens and schools” Weller added.
The federal government announced the subsidies in January for new vehicles powered by electricity, plug‑in hybrids, and range‑extenders. Payments for new registrations are made retroactively from the start of the year, but the online portal for applying will only be available in May.
VAD points out that the procedure is too complicated and details are still unclear. Even without purchase incentives, the company believes electric cars will succeed on their own merits. “As the Association of German Car Dealers, we fundamentally think the subsidy is wrong” Weller explained. He stressed that lower electricity costs and transparent pricing at charging stations are more important for e‑mobility.