According to “German Mineral Oil Duty Act,” every electric car purchase will be rewarded with a tax preference. The goal is to reach a tax deduction of 3 billion Euros by 2010 and of 5 billion Euros by 2050. As for hybrid cars, the German government has inputted 50 million Euros of subsidies since 2008 in the hope of generating a domestic demand of one million electric cars by 2020.

German car companies, such as Porsche, BMW, Audi, Volkswagen, Chrysler…etc., have been intensifying their development on electric cars and plan to launch new models starting in 2010. In order to advance the launch time, they are also seeking joint effort with lithium battery manufacturers.

Aside from subsidies inputted in car companies for the purpose of developing and producing electric cars, the German government plans to establish a country-wide EV charging network, providing more convenience to electric car owners, which will contribute to reduction of air pollution and CO2 emissions. It is estimated that by 2020, renewable energy will account for 47% of total energy consumption of Germany.