Global Incentives for EVs
Why incentives? Lots of reasons but the main reason world governments provide incentives are:
Environmental: Reduction in greenhouse gas emissions – reduction in air pollution and noise pollution in cities
Health: Improved air quality in cities, reduction in premature deaths & serious illness and a reduction in health costs
Economic: Reduction in oil import bills and improved balance of trade figures
Strategic: Less reliance on foreign oil from politically unstable regions of the world
Luxury vehicle tax break / Stamp Duty exempt in ACT – Australia has to be the most unenlightened developed country in the world in this regard. No wonder the manufacturers see little merit in bringing EVs to the land down under. We are the world’s least encouraging country for EVs despite the ‘in your face’ economic benefits of cleaner air in our cities, less spending on health, better balance of trade figures, reduction in reliance on foreign oil.
This is all about economics – you really have to be a political dunce not to have policy on this.
Some further stimulating reading from Dr. Andrew Simpson on the reasoning why Australia should be offering incentives for EVs
Good Motive Purchase Savings for EVs
The company Good Motive has bulk purchasing arrangements for the likes of Hyundai Kona, Hyundai Ioniq, Nissan LEAF, Renault Zoe with savings for EV buyers from $1,300-$2,000. Currently this is only available in NSW but there are plans to expand to other states. You can find Good Motive at this link.
Various incentives in different provinces are in place to encourage the uptake of EVs.
Incentives and exemption from annual taxes for pure electric, fuel-cell, and plug-in hybrid vehicles
“Incentives for electrically chargeable vehicles are now applied in all western European countries. The incentives mainly consist of tax reductions and exemptions as in countries such as Belgium and the Netherlands, as well as of bonus payments and premiums in Spain, Luxembourg and Portugal for the buyers of electric vehicles.
The European car industry supports the further introduction of fiscal incentives for fuel efficiency. Tax measures are an important tool in shaping consumer demand towards fuel-efficient cars, and help create a market for breakthrough technologies, notably during the introduction phase. Innovations generally first enter the market in low volumes and at a significant cost premium, and this needs to be offset by a positive policy framework. Electric mobility will make an important contribution towards ensuring sustainable mobility.” (see European Automobile Manufacturers Association).
To list some of the countries that have incentives: Austria (not Australia), Belgium, Czech Republic, Denmark, Estonia, France, Germany, Greece, Ireland, Italy, Luxembourg, Monaco, Netherlands, Norway, Portugal, Romania, Spain, Sweden, United Kingdom
All of the countries labelled as PIIGS during the GFC have incentives for EVs.
Up to $7,500 of Federal Government tax credits are available for Plug in Electric Vehicles (PEVs). In addition to that many states have additional subsidies ranging from $1,500 to $6,000 that can be applied to PEVs.
In January 2013, the Indian government announced a new plan to provide subsidies for hybrid and electric vehicles. The plan will have subsidies up to 150,000 rupees for cars and 50,000 rupees on two wheelers. India aims to have seven million electric vehicles on the road by 2020.
- New Delhi exemption of VAT up to 12.5% and refund of road tax and registration charges up to 2%.
- Karnataka 4% road tax
- Rajasthan 0% road tax
- Chattisgarh and Rajasthan 0% VAT
- Maharashtra 5% VAT
- Kerala 4% VAT
Japan has had a range of incentives for electric vehicles since 2009.
For a more detailed breakdown of individual country incentives click here