BERLIN -- Germany will reduce financial incentives to buy electric cars next year, as the vehicles' growing popularity makes government subsidies unnecessary.
"E-vehicles are becoming more and more popular and will no longer need government subsidies in the foreseeable future," Economy Minister Robert Habeck said in a statement on Tuesday.
Under the plan, subsidies for purely electric-powered vehicles priced below 40,000 euros ($40,488) will fall to 4,500 euros from 6,000 euros currently at the beginning of next year, and to 3,000 euros over the course of 2023.
For cars priced over 40,000 euros the premium will drop to 3,000 euros at the start of next year from 5,000 euros currently.