Slower charging speed bolsters car manufacturing sector
In the midst of chaos within the German automotive sector, the industry group VDA is advocating for tangible relief, particularly for electric vehicle users. As per a position paper obtained by the German Press Agency, the Association of the German Automotive Industry (VDA) asserts, "Electromobility must deliver a substantial cost benefit in the overall equation."
One crucial factor is decreasing the cost of charging electric vehicles, potentially through increased competition or less taxes and fees. Additionally, the expense of other renewable fuels needs to be reduced.
Facing a tricky situation in the industry, Federal Economics Minister Robert Habeck has scheduled a car summit for Monday to discuss these difficulties. Automobile manufacturers and suppliers are grappling with dwindling demand, particularly for electric vehicles, and a sluggish market in China.
As per the VDA, enhancing the network for charging and refueling hydrogen is essential for the growth of e-mobility. Moreover, the EU's CO2 fleet restrictions should be scrutinized and adjusted earlier than planned. These limits determine the amount of damaging CO2 that vehicles are allowed to emit in the future.
Habeck hints at financial aid measures
The paper suggests that the current regulations are not supported by adequate political measures, making them unachievable. Improving the framework conditions swiftly is considered vital to persuade consumers to transition to electric vehicles.
Habeck alludes to potential new financial aid measures for electric vehicles. Committed to revitalizing the market, the Green politican mentioned the federal government’s plans for tax benefits for electric vehicles used as company cars. Additional measures are also being explored.
The economic struggles of the automotive sector greatly impact the overall economy. Therefore, the implementation of Habeck's proposed financial aid measures could significantly contribute to boosting the sales of electric vehicles.
Given the VDA's emphasis on reducing the cost of charging electric vehicles, implementing less taxes and fees on electrical energy could positively influence the adoption of electric vehicles in the market.
