Electric Trucks Receive 80% Government Subsidy

Volvo Trucks currently offers five electric truck models. The Federal Ministry of Transport (BMVI) announces the implementation of the funding guidelines for commercial vehicles with alternative drives after approval by the European Commission. Among the measures is a purchase premium for trucks with electric drives, which provides for a subsidy of up to 80 percent of the additional costs compared to a diesel truck.

(Ismaning) Volvo currently offers five electric truck models. A purchase premium of up to 80% of the additional costs compared to a diesel truck has been decided for trucks with electric drives.

Volvo Trucks welcomes the funding for the purchase of alternatively powered commercial vehicles and the support for the expansion of charging infrastructure. This paves the way for a rapid scaling of registration numbers for electric trucks in Germany and Europe. Since 2019, electric Volvo trucks up to 27 tons have been available for purchase. The Volvo FL Electric and Volvo FE Electric models have been in series production since 2020 and have already been delivered in Germany. Volvo plans to expand its lineup of electric trucks with three more E-models by 2022. Series production of the Volvo FH Electric, Volvo FM Electric, and Volvo FMX Electric models is scheduled for the second half of 2022. Volvo Trucks aims to sell only trucks with alternative drives by 2040. By 2030, Volvo Trucks intends to generate half of its revenue from electric commercial vehicles.

Implement Concrete Core Measures

The Federal Ministry of Transport (BMVI) aims to implement the requirements of the climate protection program with three concrete core measures:

1. Additional costs when purchasing an electric truck compared to a diesel truck should be subsidized by up to 80 percent.
2. Funding for the tank and charging infrastructure required for the operation of climate-friendly commercial vehicles at 80 percent of the eligible project-related total expenses.
3. Funding for the preparation of feasibility studies on the use of climate-friendly commercial vehicles as well as the establishment or expansion of corresponding infrastructure at 50 percent of the eligible project-related expenses.

1.6 Billion Euros by 2024

With these measures, climate-friendly commercial vehicles are to be made competitive, and planning and investment security for companies increased.

By 2024, the BMVI will provide a total of approximately 1.6 billion euros for the promotion of the acquisition of climate-friendly commercial vehicles and approximately 5 billion euros for the establishment of tank and charging infrastructure (cars and trucks).

Further details of the funding will be regulated by the guideline text and the first funding call, which will be published shortly.

Photo: © Volvo Trucks