Germany's economy ministry plans to end subsidies for plug-in hybrids early by the end of this year and cut cash incentives for pure electric vehicles by a third from 2023, according to people familiar with the matter. The move is said to be aimed at directing more subsidies to climate protection, and relevant government departments are currently discussing legislation on this.

　　Under the proposal, the subsidy of up to 4,500 euros ($4,874) for a plug-in hybrid car would be eliminated; the subsidy for a pure electric car would fall from the current 6,000 euros to 4,000 euros next year by 2024, the person said. In 2025 and 2025 it will be reduced to 3000 euros.

　　"We want to increase our support for electric vehicles and focus more on climate protection." Previously, German Green Party chairman and economy minister Robert Habeck said, "In our view, There is a market for plug-in hybrid vehicles that no longer require subsidies from public funds.”

　　However, the German auto industry has opposed the plan to cut subsidies. "Plug-in hybrids are the forerunners of the transition to pure electric vehicles," said Hildegard Mueller, head of the VDA, the automaker's lobby group. Car subsidies will jeopardize the growth of pure electric vehicles and ignore the status quo of German consumers.”

　　In addition, Mueller complained that linking the subsidy to the delivery date of the vehicle created uncertainty about whether consumers could receive the subsidy. Due to supply chain issues, they often wait months before mentioning the car.

　　Liberal Democrat transport policy spokesman Bernd Reuther also said the ruling coalition should not deviate from the original subsidy scheme because plug-in hybrids also help meet climate goals. "We have to transition as much as possible to these cars and subsidize them accordingly," Ruther said.