Government expands electric vehicle subsidies

The government is raising the electric vehicle subsidy threshold for corporate fleets from five to 35 vehicles, István Lepsényi, state secretary at the Ministry for National Economy, said Tuesday. The government is offering to cover 21% of the cost of purchasing a fully electric vehicle for corporate fleets up to HUF 1.5 million.

There are more than 3,000 EVs on the roads in Hungary. Such vehicles are exempt from registration tax and a number of other fees, according to national news agency MTI. Last year, the government allocated HUF 2 billion for the subsidies.

So far, more than HUF 700 mln has been paid out on almost 500 purchases. Private individuals now account for 42% of those awarded the subsidies, up from 30% last year.

The central government is offering local councils grants to cover 100% of the cost of installing charging stations. So far, applications by 75 municipal councils for a combined HUF 533 mln in funding have been approved. The subsidies will support the installation of 443 charging stations.

The threshold for subsidies will be scrapped for budget-funded institutions, Lepsényi added.