BERLIN (AP) — The German government is supercharging subsidies for electric cars on the day the country’s biggest automaker began production of a new all-electric vehicle. Chancellor Angela Merkel’s office said officials and industry representatives agreed late Monday to increase by half the existing government incentives for electric vehicles with a list price of 40,000 euros ($44,500). German news agency dpa reported that half of the subsidy, in future amounting to 6,000 euros, will be borne by industry. The subsidy will also be extended from the end of 2020 currently to the end of 2025. Government and industry also agreed to aim for 50,000 publicly accessible charging stations nationwide by 2022. The announcement came as German automaker Volkswagen began mass production of its ID.3 electric car in the eastern town of Zwickau.
The German government has agreed to increase its subsidies for electric cars costing €40,000 ($44,500) by 50%, half of which, €6,000, will come from the auto industry, and is extending the support package to 2025 from its current 2020 deadline. In a statement on Monday, Chancellor Angela Merkel said that she was "convinced" that Germany could meet its target without increasing taxes or introducing new ones. The subsidy extension was announced as VW began mass production of its ID.3 electric car.