Opinion: E-car subsidies help climate goal as little as combustion engine ban

Contents

Now it is finally known how the federal government wants to subsidize the “awesome” electric cars. That's what Federal Environment Minister Carsten Schneider (SPD) called cars of national and EU production. After all, for the new edition of the electric car subsidy for private individuals, there is a more heavily weighted social component than in the predecessor version, which was prematurely ended by the then coalition. Instead of further subsidies, however, a consistently clear line for e-mobility from the outset would probably have helped better. Because to achieve the EU-wide agreed CO₂ reduction in the transport sector through an increasing number of electric cars, the fleet consumption mechanism has been in force for years. It can and will force manufacturers to find ways themselves to build affordable electric cars and bring them to the public in sufficient numbers. Schneider rightly reminded of this again at today's press conference.

Not particularly targeted

The automotive industry has already acquired the capabilities for this in the past ten years and was supported in this by the first purchase premium for electric cars, but not primarily. It primarily benefited those who would have had enough money anyway. The proof after the subsidy expired: the manufacturers lowered their prices, which they could do cost-neutrally thanks to the surcharge equal to their “share” of the subsidy. So the money flowed primarily towards the industry, which, given its difficulties, was certainly helpful but not particularly targeted.

It was therefore rightly asked whether a subsidy for charging infrastructure would not have been more sustainable, just as the Deutsche Umwelthilfe (DUH) is currently doing again. However, with such questions, one enters a chicken-and-egg discussion. Because the promise to upgrade the charging infrastructure according to the growth in customers is a quite credible promise from politicians. The DUH has no point with this.

The Chinese are coming, possibly

The reference to the market power of Chinese manufacturers, which has been heard almost inflationarily for years, is also justified, who can produce so cheaply thanks to state support at all levels that they will roll up the market if we don't act here. However, the numbers speak such a convincing language that Minister Schneider quoted them with almost relish at the press conference to announce the subsidy conditions. In Germany, German and, with a few percent, European brands dominate 80 percent of the electric car market. The rest is shared by Chinese, Koreans, and one US brand. The reasons are manifold. One is that the Chinese see no point in dumping, an even more important one being the maturity of the products in terms of German and European customers. Later, the federal government can and will realign decisions.

However, within the three years in which the new subsidy is to apply, one can probably remain calm. Ideally, also afterward, because over this period there will be an electric car offensive like no other. Not from China, but from the heart of the German automotive industry, from Volkswagen. But other manufacturers also show that they are not only willing but also able to offer competitive electric cars.

Free-rider effects

The federal government has itself to blame for the dip in sales. Without subsidies, sales would have risen a little less steeply at first, but there would have been no slump afterward. Unfortunately, this has two causes. Firstly, potential e-car buyers waited for the new subsidy. One must expect such free riders and can live with them. No major problem. Secondly, however - worse, because more sustainable - the discussions during the first subsidy phase and the numerous tinkering with it, and now even more so the tug-of-war over renewed subsidies, have contributed to damaging the tender plant of trust in e-mobility. The new subsidy, after this history, decidedly gives the impression that e-cars only sell if buyers are also thrown money.

However, irresponsible politicians have already pandered to a future-hesitant clientele who wish for the hearth and home and fuel in the tank once and for all. For voter votes, these politicians have called for a reversal of the exit from combustion engine production and are even selling the EU's decision as a breakthrough. It is understandable that such a transparent strategy has driven far too many voters to extremist parties instead of keeping them.

Need for explanation for unsettled customers

The automotive industry, shaken twice in its credibility by the combustion engine ban reversal and superfluous public subsidies, now has to explain to some unsettled customers why electric cars are now actually better for most of them. In addition, it will build combustion engines for a longer transitional period to capture unnecessary demand, instead of being able to concentrate on the development and construction of e-cars. Although their time has come. Politics should have spared itself the whole back and forth for the decarbonization of the transport sector. Also by refraining from individual electric car subsidies.

(fpi)