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Hungarian government to announce further subsidies for e-mobility

In spring, the Hungarian government allocated 5 billion forints (14 million euros) to subsidise and incentivise the uptake of electric vehicles as part of its Climate and Nature Protection Action Plan. Given the success of the subsidy scheme, the government decided to expand the programme, with an additional 882 million forints (2.5 million euros) so that all applications submitted in compliance with the tender criteria can receive support, said Minister for Innovation and Technology László Palkovics.

“Altogether the government’s subsidy scheme will support the purchase of more than 2,000 electric vehicles,” informed the Minister.

The government intended to reform the incentive system by offering higher grants for small and economy car models. Under the purchase price of 11 million forints, customers could receive the support of up to 2.5 million forints. The scheme also provided support for micro-mobility as well as taxi drivers who could receive support up to 55 per cent of the total purchase price.

The government informed that individual buyers and businesses both showed great interest in buying electric vehicles. In total, 662 private individuals have applied for government support, while 738 companies, including 294 taxi or car passenger transport companies, submitted applications for the purchase of an electric car.

The Minister emphasised that the uptake of e-mobility in Hungary is essential for achieving the country’s 2050 climate neutrality target, which is already enshrined in law. The Minister welcomed that the electromobility market was reflective of the reformed support system, stimulating this way competition.

The Minister highlighted that Hungary is already at the forefront of Europe in terms of the expansion of electromobility, recalling that in the first half of 2020 the number of alternative-powered cars on the market increased the most in Hungary among all the Member States.

Apart from supporting the support the wider availability of affordable electric cars the government also launched its Green Bus Programme with the objective of replacing every second bus in the public transport systems of Hungarian cities with low- or zero-emission ones in the next ten years.

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