Electric cars

Babiš: No incentives for electric car owners

The Czech government doesn’t plan any incentives for electric car owners, said Babiš following a colloquium with automotive industry representatives.

The Czech government has no plans to introduce incentives for electric car owners.

According to the Czech News Agency, PM Babiš held a colloquium with automotive industry representatives where expressed skepticism about emission limits. He stated that the country would only continue with electric car programs for entrepreneurs and public administration.

According to PM Babiš, the Czech Republic gave 1.2 billion CZK to infrastructure development, mainly for charging stations. He also reminded that there are other subsidy programs worth half a billion CZK still in place for purchasing electric and ecological cars by companies, public administration and organizations.

In 2016 and 2017, the Ministry of Environment invited car manufacturers to participate in a joint project with the state, in which part of a subsidy would be provided directly by the state and another part by the manufacturer, said Environment Minister Richard Brabec.

It was supposed to lower the number of old cars on the roads, but manufacturers rejected it, he added. Therefore, a governmental subsidy program won’t be effective at the moment, as it would only allow a wealthier household to purchase an electric car as their second or third, explained Brabec.

It is really a challenge to manufacture 25 percent of electric cars by 2025 and 40 percent by 2030, said Babiš, adding that he remains hopeful those goals will be met. He reminded that Europe contributes to world emissions with less than 10 percent and if compared to China with 20 percent and the U.S. with 16 percent, it has much tighter emission limits. It may have a negative impact on the competitiveness of the European industry, warned Babiš.

The Czech Republic still relies on the automotive industry, which generates 9 percent of its GDP and adds up to 26 percent of all industrial production. The country produces 1,340 cars per 1,000 inhabitants, which is the highest in the world and even more than neighboring Slovakia that led the rankings previously.

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