4.1 planning. For derivation of effective solution; effective understanding

4.1 Germany Government policies


Starting from the
background of Europe taking responsibility to reduce the green house gas into
the atmosphere, Germany took actions to promote eco-friendly cars. The CO2
emission standards for motor vehicles introduced in 2007 14, has been increasingly
stringent over the years, The standards have enforced significant pressure on
the makers to ensure the quantity of the emissions from the combustion vehicles.

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As greenhouse gas emission reduction also means to improve fuel efficiency of
the car, the standards have also strengthened the overall fuel economy of the vehicles.

Further reinforcement of standards will be employed into effect by 2020.


In 2009, Germany
adopted the “National Electro mobility Development Plan” as a measure for the
development on electric vehicles intensively. The plan sets a goal of “becoming
a lead market and lead manufacturer, with the goal of 1,000,000 electric
vehicles on the road by 2020” 15. The important Energy Concept policy
statement of 2010 added a goal of  “6,000,000
vehicles by 2030”. 15


The Electro mobility
Plan further established the National Platform for Electro mobility with
experts from industry. The experts were split into seven working groups on
drive technologies and vehicle integration: 16



infrastructure and power grid integration


and certification

and recycling

and qualifications



The results from
above working groups are compiled together to focus and address the issues
related to vehicle technology, charging infrastructure, energy, environment and
urban planning. For derivation of effective solution; effective understanding
of standards along with extensive use of information and communication
technology are important. The National Platform for Electro mobility (NPE) has
a vision to create a robust ‘electric mobility system’ by 2020 that gains
widespread public acceptance, guarantees high availability, reliably meets
individual mobility needs while also facilitates the marketing of
technologically sophisticated and profitable products 17.


The government
policies of Germany is strategically formulated to focus on research and
development and public–private partnerships while placing lesser attention on
individual consumer consumption incentives, indicating the manufacturers to build
the new technology that can lead the market on a global scale.


Four testing
regions within the federal states of Baden-Württemberg, Berlin/Brandenburg,
Lower Saxony and Bavaria for electric mobility have been introduced in 2014.

The Federal government funded 157 million euros to 90 projects with a total of
334 individual initiatives in the above regions 18, The focus of the projects
are on testing and demonstration of electric mobility becoming a practice in
everyday life, and integration of information and communication technology with
electric vehicles in the transport system.


Various legal
incentives for alternate drive train vehicles are in force in Germany. Electric
vehicles are exempted from the motor vehicle tax for 10 years when licensed
before 2015 and for 5 years when licensed from 2016 until the end of 2020. This
exemption is also accompanied by a 50 per cent tax reduction on the purchase
price for all EVs 19. The federal ordinance on the licensing of motor
vehicles allows interchangeable license plates for traditional and electric
vehicles. This facility is intended to promote ownership of an Electric vehicle
as the second vehicle. Electricity used in public transport is given a
reduction in tax on electricity 20. With the changes within the Energy Law
framework in 2016, the charging point’s operators are no longer to be
considered as energy suppliers but rather treated as final consumers without
the obligations to pay energy suppliers’ tax. Additionally the German
government in 2016 introduced a minor financial incentive of 2,000 euros when
buying a pure electric car and 1,500 euros incentive upon buying a hybrid
electric vehicle. A new Electro mobility Act was enacted in June 2015. It gives
authority to municipalities to give privileges to alternate fuel vehicles such
as, electric or Hybrid or Fuel cell powered vehicle for parking and using the
bus lanes. These vehicles are to be specially identified in their registration
numbers. 21


To harmonize the
charging infrastructure standards in Germany a draft order on charging
infrastructure was presented in October 2015. The main focus was to grant
information exchange between national and European countries for effective
building of infrastructure according to recent European legislation. The
operators of public charging infrastructure will be obliged to report the start
and finish of infrastructure operations to the Federal Network Agency.  22


In September 2016
Germany’s Federal Council sent a note to the European Council with regard to a
strategy to move towards ‘low emission mobility’. The intention is to make use
of fiscal instruments within Europe so that by 2030 only zero emissions
vehicles would be registered. Nevertheless, the recent legislation and policy
measures do not expect major subsidies or economically relevant direct aid for
Electric vehicle consumers while it is thought to be the reason for the small
volumes of sales of EVs. 23


The direction of
the government clearly points to eco-friendly transport systems, persisting the
customers and the manufacturers to change their product technology. To
understand the impact, we need to understand the change in product technology
of both existing and the new products. After understanding the difference we
can formulate a perspective for the observation of suppliers and assess the
change and impact caused.