The electric vehicle industry was rising at an impressive rate until the coronavirus pandemic threw a wrench into everything. This global economic downturn has been felt throughout the entire automotive industry. But with all the progress we have made, many people believe that there is no use propping up an industry of the past. Government stimulus needs to be focused on forward-looking industries, like electric vehicles and clean energy.
France was one of the first countries to push EVs as part of the economic recovery program they unveiled last week. Germany is following suit, with an even more aggressive plan to accelerate EV adoption as part of its 130 Billion Euro stimulus plan.
They are starting with a massive combination of incentives and tax reductions. The subsidy for buying a new EV in Germany is doubling to €6,000. When combined with the manufacturer contribution that adds up to a €9,000 subsidy. That’s over $10,000 USD. The sales tax is also down to 16% from 19%.
These subsidies alone could have a massive impact on EV adoption. But that’s just the beginning. Germany isn’t just propping up the industry during tough times, they plan to push EVs and green energy forward.
Carmakers are going to be receiving 2 billion Euros for research and development. This is critical to allow new technology to be developed. Many auto manufacturers have been forced to prioritize where they invest due to this pandemic. So without this kind of investment from the government companies like Volkswagen or BMW could stand to lose even more ground to Tesla.
And the most interesting part of this plan is how Germany intends to expand its EV charging infrastructure. Germany will soon require all gas stations to also offer EV charging stations. This is by far one of the most ambitious EV infrastructure roll-outs we have ever seen.
This move has seen immense praise from EV advocates everywhere. But Electrek questions the usefulness of EV charging at gas stations. Without knowing any requirements for the type of charger being used, there’s worry about being stuck at a boring gas station for an hour just to top up. Unless these are DC fast chargers at every gas station, no one is going to want to use them.
Chargers are normally located at places where it would make sense to leave your car parked for an hour. Places that have something to do. But I think these chargers could achieve something greater, even if they aren’t used as much as chargers placed elsewhere.
The big thing is that they promote confidence in EVs. While EV charging stations are pretty much everywhere, most people would probably say they have never seen one. They aren’t very visible, and to the average consumer their placement might seem random. Why would I want to go to the mall just to charge my car?
Placing chargers at every gas station will do a ton to build confidence in EVs. If you wish to buy a new EV, you KNOW where you can charge it up. You know for a fact that there will be no dead-zones, with inadequate charging coverage. And you can be confident that you will never have to experience range anxiety again.
This is why government intervention can be so crucial to expanding EV infrastructure. By making things consistent, they can completely eliminate questions about charging coverage. Even though charging coverage in the US is pretty good, you would hardly know it if you don’t drive an EV. Chargers don’t advertise themselves like gas stations, and we shouldn’t need an app to figure out where the nearest charger is.
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