Germany To Introduce $4,500 Subsidy For Buying An EV

"Of this, 300 million euros will be used on the charging infrastructure between 2017 and 2020," Finance Minister Wolfgang Schaeuble said, unveiling the plans during a news conference with other government ministers.

The German government has said it wants to raise the number of electric vehicles on German roads to 1 million by 2020, from about 50,000 currently.

Under the new plans, EV buyers will get a 4,000 euro incentive, which will be shared equally by the government and the car industry. The buyers of plug-in hybrid cars will get a premium of 3,000 euros.

Luxury cars with a price tag of more than 60,000 euros will not benefit from the scheme, Schaeuble said. The minister added that the scheme would start in May and that the government was considering additional steps such as tax incentives to make EVs even more attractive.