Nio to compensate 4,500 EUR EV subsidy as German government drops out
The German government announced on Saturday that it is, with immediate effect, ending all EV subsidies known as the environmental bonus program as the country is facing a budget crisis. The program was initially supposed to continue until December 31.
Today, Nio announced it would compensate the 4,500 EUR BAFA (Federal Office of Economics and Export Control) subsidy to all buyers who buy the car between December 18 and 31. The EV must be delivered by January 31, 2024, and includes standard models and cars purchased without batteries under the Battery-as-a-Service (BaaS) program.
“When you order a Nio model with BaaS up to December 31, we grant a discount of 1,500 EUR from the manufacturer’s share and an additional 3,000 EUR as compensation for the federal subsidy”, stated Nio in a press release.
Before the subsidies end, customers in Germany could enjoy a total subsidy of 6,750 EUR (7,400 USD) to buy, and EV 4,500 EUR (4,900 USD) were covered by the government and 2,250 EUR (2,500 USD) by the manufacturer.
Nio joins other automakers who announced they will cover the subsidy. Tesla, Mercedes-Benz, Stellantis, and Volkswagen announced they will provide the total subsidy for electric vehicles bought before December 31.
Nio entered the German market in October of last year and opened its first Nio House in the country two months later, on December 16. In 2023, between January and November, it registered 1,224 EVs on the German market.
