German media: Experts warn: Germany's electric vehicle purchase subsidies may become a "help" for Chinese manufacturers
The German government plans to reintroduce electric vehicle purchase subsidies, aiming to boost the sluggish automotive market. However, consulting giant Deloitte warns that if no "local value ratio" restrictions are set, this 3 billion euro subsidy could end up benefiting Chinese competitors. Currently, the German Ministry of the Environment is drafting detailed rules, trying to strike a balance between promoting consumption and protecting the domestic industry.
As the German federal government announced the restoration of electric vehicle purchase subsidies, concerns have increased about whether this move might indirectly subsidize Chinese competitors. According to the latest assessment by consulting firm Deloitte, the subsidy policy will significantly boost the sales of battery electric vehicles. However, without preventive measures, the money of German taxpayers may ultimately benefit Chinese manufacturers.
Deloitte's automotive experts estimate that the subsidy could bring an additional 180,000 electric vehicle sales to the German market each year. By 2030, the total 3 billion euro support funds are expected to add 750,000 electric vehicles to German roads.
"Local proportion" becomes the focus
Deloitte experts point out that current European electric vehicle production capacity is still insufficient to fully meet this expected growth. Harald Proff, an automotive industry expert at Deloitte, suggests that subsidies should be linked to the "manufacturing region."
"To truly support the European automotive industry, we must define 'local content' standards," Proff said. "Otherwise, we face the risk of using German tax money to subsidize Chinese imported vehicles." The so-called "local content ratio" refers to the proportion of value created within a specific region, rather than relying entirely on imports.
The Ministry of the Environment is finalizing the details
The German federal government announced this plan in October this year, which is expected to take effect in 2026. Currently, the Federal Ministry of the Environment is working quickly to develop the specific framework of the project. According to the current plan, the subsidy will mainly target private consumers who purchase or lease pure electric vehicles and plug-in hybrid vehicles.
To reflect social fairness, the subsidy will have strict income thresholds: the annual taxable income limit for families is 80,000 euros, with an increase of 5,000 euros per additional child. The basic subsidy is expected to be 3,000 euros, and eligible families can receive up to 5,000 euros in funding.
Chinese manufacturers are watching closely
Despite the strong recommendations from experts, according to the current information, the plan did not include clear "local value ratio" restrictions during its initial drafting. The Federal Ministry of the Environment stated on its official website that the government is seeking to "quickly" establish evaluation criteria and preferential rules that comply with EU law and plans to integrate them into the current plan in later stages.
At the same time, Chinese electric vehicle manufacturers have accumulated a large amount of excess capacity in recent years and are urgently seeking to improve their financial situation through exports. For German automakers facing both digital transformation and cost pressures, if the government subsidy fails to establish effective entry barriers, the competitive pressure will further intensify.
Source: DW
Original: toutiao.com/article/1852170620063744/
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