German Finance Minister Olaf Scholz plans to extend tax incentives for electric company cars, he told a newspaper on Saturday, the government's latest attempt to boost demand for clean vehicles.
Germany is trying to increase electric car sales in the wake of a diesel emissions cheating scandal that has engulfed its auto industry in the last three years.
“Half of all cars sold in Germany are company cars,” Scholz told the Frankfurter Allgemeine Sonntagszeitung. “So I have decided that we will not end tax support for electric cars and plug-in hybrid company cars in 2021 but extend them maybe over the whole decade,” he said, adding that would help improve air quality and meet climate goals.
He added, however, that the rules for plug-in hybrids would be tightened, so that only cars that can travel on electric power further than they do today would be eligible.