Subsidies for companies to purchase electric cars
In the European automotive landscape, the Czech Republic emerges as a market where the transition to electric cars is proceeding at a slower pace. However, the Ministry of Industry and Trade is about to act to reverse this trend. A new state program aims to stimulate sales of battery- or hydrogen-powered vehicles by offering incentives to private companies.
Funded through the National Recovery Plan, with funds from the European Union, the program includes total support that could reach up to 1.65 billion kroner. This massive investment is designed to encourage entrepreneurs to opt for more sustainable vehicles, thereby helping to reduce harmful emissions and promote the transition to zero-emission mobility. A significant portion of these funds, amounting to three hundred million kronor, will be allocated to support the acquisition and construction of charging stations. This strategic step aims to bridge the infrastructure needed to support a growing fleet of electric vehicles, making charging more accessible and further consolidating support for new technologies.
With this initiative, the Czech Republic joins the map of European countries adopting proactive policies to accelerate the adoption of electric vehicles. Financial support for businesses, along with investment in charging infrastructure, could be a turning point in transforming the country into a more favorable market toward sustainable mobility.
The subsidy
Two main motivations lie behind this initiative, as explained by the senior director of the EU Funds Section, Marian Piecha. The primary motivations driving Czech companies toward electric vehicles are the incentives, which will only be available with the launch of the program, and the benefit of free parking anywhere in Prague.
The program includes total financial support of up to 1.65 billion crowns, with another 300 million dedicated to the installation and construction of charging stations. The ministry will officially launch the appeal on December 1 this year, and companies can apply for support until the end of September 2025. A key difference from previous programs is that current companies will only be eligible for the incentive if they purchase battery- or hydrogen-powered vehicles backed by a loan guaranteed by the National Development Bank, the ministry’s partner in this initiative.
The subsidy is divided into two main parts: a bank guarantee for a commercial loan provided by Národní rozvojová banka and a direct financial contribution for the purchase of zero-emission cars or charging stations. The bank guarantee can cover up to 70 percent of the guaranteed loan amount. Interested companies can apply for support for the purchase of electric vehicles or charging stations from leasing companies or new car dealers. The development bank will evaluate applications based on predetermined criteria. Financial support varies according to the type of vehicle or charging station, with incentives of up to 200,000 kronor for cars, 300,000 kronor for trucks or hydrogen cars, and 50,000-100,000 kronor for charging stations. The ministry expects that companies will use approximately two billion kronor in support, and Piecha stresses that the conditions for obtaining reimbursement are very affordable.
The goal of the state
The Ministry’s ambitious goal is to support the sale of at least 4,555 electric cars, a condition for obtaining European funds. The amount of support will initially be covered by the Ministry’s budget, but if conditions are met, a request will be submitted to the European Commission for reimbursement of the full amount.
Although the Czech Republic has facilitated five grant programs between 2018 and 2021, supporting the purchase of more than 1,116 vehicles worth over eight hundred million kroner, the share of electric cars in total sales remains among the lowest in the European Union. However, with the implementation of these new incentives, the Czech government hopes to accelerate the transition to zero-emission vehicles and contribute to more sustainable mobility in the country.
Source : https://www.e15.cz/
Image source: https://www.alvolante.it/
Graphic source: https://storyset.com/
