Germany Expands EV Subsidies to Include Range Extender Vehicles

Germany's EV Subsidy Program Overview

BERLIN, Jan 19 (Reuters) - Germany will make cars with range extenders eligible for subsidies under a previously reported scheme to assist small- and medium-income households in their purchases of new electric cars, the environment ministry said on Monday.

The government will pay between 1,500 and 6,000 euros ($1,700-$7,000) per car purchase, the ministry said, in a bid by Berlin to revive sluggish sales of one of the country's key industries. An outline of the scheme was previously reported by Bild newspaper on Friday.

A range extender is an on-board generator powered by a small combustion engine to recharge an electric vehicle's main battery pack.

Subsidy Amounts and Eligibility

Berlin has earmarked 3 billion euros ($3.5 billion) for the scheme, which will likely cover 800,000 subsidised vehicles until 2029, the ministry said, adding that applications can be submitted retroactively for new registrations from January 1.

Inclusion of Imported Vehicles

Imported cars, also those made in Germany's major auto-making rival China, would not be excluded from the financial support programme, Environment Minister Carsten Schneider said during a press conference.

Government's Commitment to Competition

"We will rise to the challenge of the competition and are not imposing limits in that regard," he said, adding that German carmakers had a strong product offering.

($1 = 0.8610 euros)

(Reporting by Holger HansenWriting by Ludwig BurgerEditing by Miranda Murray and Linda Pasquini)