- EV purchase grants and tax incentives available in 26 EU countries
- Governments offering grants for EV charge points; encouraging use of ‘green’ energy
- EV owners also benefit from free and reserved parking, the use of bus and taxi lanes, toll reductions, and cheaper insurance
- Countries start to introduce green license plates to help promote EV awareness
Shanghai/Munich, 19 January 2022– There are many obvious benefits to owning or subscribing to an electric vehicle, including driving pleasure, lifetime fuel savings and knowing that you’re doing something to help the planet while enjoying the latest and best mobility tech the car industry has to offer.
Not so obvious are the ‘hidden’ financial benefits to running an EV – especially those offered by governments and local authorities keen on reducing harmful emissions in urban areas and delivering carbon reduction promises.
As we start the new year, a year that will witness a giant leap in awareness and uptake of electric vehicles across Europe, Aiways, producer of the all-electric U5 SUV, has compiled a useful summary of the many financial benefits available to EV buyers.
Upfront price and tax incentives
Today, purchase grants and tax incentives for EVs are available in 26 out of the 27 EU countries to encourage people to consider going electric. These incentives are governments’ way of reducing the upfront cost of an EV, which some people see as a barrier to uptake.
Estonia offers the largest maximum EV purchase grant in Europe, with the government contributing up to 50% of the price of the vehicle (maximum of €18,000). This is twice as generous as the EV incentives on offer in Germany, which offers a €9,000 ‘environmental bonus’ if the new EV costs up to €40,000. This comprises a government grant of €6,000 and a further €3,000 from the manufacturer depending on vehicle brand. Taking advantage of Germany’s environmental bonus, EV buyers can purchase the all-electric U5 SUV for as little as €29,993, for example.
In France, prospective EV buyers can apply for a discount worth 27% of the vehicle’s gross cost (including tax) – up to a maximum of €6,000. This only applies to vehicles with a list price of less than €45,000. For vehicles between €45,000 and €60,000, motorists will be entitled to a grant worth €2,000.
Other countries take a slightly different, but no less valuable, approach to EV incentives. The Danish government, for example, has significantly reduced vehicle registration tax for EVs, which ranges from 85% to 150% for conventionally-powered new cars. Buying an EV in 2021 resulted in an average reduction of nearly €11,000 in payable registration tax – levelling the playing field between electric and ICE vehicles. A similar approach is taken in Norway, where EV buyers are exempt from paying the country’s 25% VAT rate on new or used electric vehicles.
The majority of countries in Europe offer an exemption from key taxes for EV use, including Germany, Italy, and Spain – three markets where you can buy the Aiways U5 SUV. Other markets where Aiways has a presence, such as France, Belgium, Denmark and the Netherlands, offer a minimum or reduced rate of road tax.
EV charging support
Available incentives also extend to EV charging – for both residential and commercial charge points. The installation of sufficient private and public charging stations is seen as key to the widespread adoption of EVs by individuals and companies.
Across Europe, authorities are doing their best to encourage people to consider ‘green’ energy – electricity powered by wind, solar or biomass – wherever possible.
If an EV buyer in Belgium, for example, can evidence the domestic use of green energy, they are eligible for a grant worth up to €1,500 for the installation of a charge point in or in the immediate vicinity of their home. Similar grants are available in Austria, France and Germany – worth up to €960. In France, the grant can be extended to €1,660 for a shared charge point. In Italy, EV buyers can claim a refund of up to €2,000 for purchasing and installing EV charge points (up to 22 kW) in privately used parking spaces – individual or shared.
In the Netherlands, citizens in most regions can simply request a free installation of a public charging point near their home or workplace. Once installed, access to the charger is free and you only pay for the energy used to charge your car. This appears to be a highly effective approach, as of by the end of 2019, 26% of all EV charge points in the EU could be found in the Netherlands.
The financial benefits don’t stop once you’ve bought an EV and installed a charge point. During your daily life with the vehicle, there are a growing number of additional perks that come with zero emissions driving.
In Germany, for example, more than 100 cities and municipalities offer privileges such as free and reserved EV parking, the use of bus and taxi lanes as well as permission to use restricted routes. In Denmark, EVs are exempt from parking fees up to €670 per year. Similar incentives apply across all European markets. In Norway, the perks also extend to free toll bridge and ferry crossings, while in Italy, EV buyers will notice a 30-40% reduction in insurance costs.
License to go EV
In certain European countries you can now buy green license plates for your EV, with a view to promoting EV awareness and help drivers more easily benefit from local incentives like free or cheaper parking.
In this regard, Europe is following the example set by China. As early as 2016, the Chinese government began to award special green license plates to EV buyers to better distinguish and identify electric vehicles. These green license plates are not subject to the license rationing system in many Chinese cities, designed to reduce the number of polluting cars in urban areas.
For example, Shanghai City, the home of Aiways, has pledged to provide free special license plates to new consumers of electric vehicles until at least the end of 2023 in an effort to encourage the use and purchases of environmentally friendly vehicles.
The Chinese government has taken a variety of measures to boost EV uptake, and is targeting a 20% market share for new zero emission vehicles by 2035.
Founded in 2017, Aiways is a Shanghai-based personal mobility provider with its European HQ in Munich, Germany. It was the first Chinese startup to introduce an electric vehicle to the European market with the launch of the U5 in 2020 – a battery-electric SUV with impressive range, style, and quality. Aiways is rapidly continuing its expansion in Europe and beyond: order books are open in Germany, Netherlands, Belgium, Denmark, France, Israel, Switzerland, Spain, Portugal, Italy, and Sweden – with more markets to follow. The U5 SUV is produced at Aiways smart production facility in Shangrao – one of the most modern car production facilities in China. The IT- controlled processes with challenging quality gates follow the standards of Industry 4.0. With an initial production capacity of 150,000 units per annum, Aiways can increase this number to 300,000 units when global EV demand rises. Aiways’ next model for Europe will be the battery-electric U6 SUV-Coupé. With a focus on sophisticated aerodynamics, highly connected driving, safety technology, and a sporty design. The U6 SUV-Coupé is just the next chapter of Aiways’ promising future.
You can find all Aiways press releases and press kits, as well as a wide selection of high resolution, downloadable photographs, and video footage on the media website: http://media.ai-ways.eu/.
Aiways media contacts
Bernd Abel, Aiways Automobile Europe GmbH
James Parsons, PFPR Communications
+44 (0)7725 257792