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Numbers for the First Round of Applications to Purchase Electric Cars Are In

Hungary Today 2024.02.07.

By Tuesday morning, 1,121 companies had submitted applications for support for 1,440 vehicles worth HUF 5.6 billion (EUR 14.5 million), reports Világgazdaság. The call for applications to promote the use of green energy is open until the end of March, 2025, the Ministry of Energy said in a statement.

Applications can be submitted from 5 p.m. on Monday for the purchase of

  • pure electric passenger cars
  • vans
  • or minibuses.

The non-refundable state contribution is available to Hungarian companies and the total budget of the scheme is HUF 30 billion (EUR 77.6 million). The total amount will be enough for up to 9,375 cars, which is not a small amount, as it will far exceed the total number of new e-cars registered in Hungary in 2023 (5,807).

Depending on the capacity of the battery, the scheme could provide between HUF 2.8 million (EUR 7,243) and HUF 4 million (EUR 10,347) per vehicle, with a total of up to HUF 64 million (EUR 165,561) per company.

  • Companies with less than ten employees can receive 1
  • businesses with employees between 10 and 49 can buy up to 5
  • firms with 50-249 employees can receive up to 10
  • larger corporations can purchase up to 16 vehicles.

Almost two thirds of the total budget can be used for purchases by rural businesses,

and the regionally earmarked aid envelopes can be reallocated depending on the number of applications.

Hungarian companies established by the end of 2021 can apply for this aid, with the exception of car dealers and car rental companies. An additional condition is that the applicant’s net turnover, or in the case of sole entrepreneurs and other self-employed persons, the turnover shown in their most recent annual accounts, must exceed the eligible costs of the project.

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Only the purchase or financial leasing of a new fully electric vehicle that complies with the categories M1, M2, or N1, N2 is eligible.

No government contribution is paid for the purchase of hybrids.

Alapjárat pointed out the important criterion that the vehicle purchased with the aid must not be sold within three years of purchase or ownership or by December 31, 2027 at the latest. This is to filter out those who are profiteering.

The financing of the scheme is set out in the REPowerEU chapter, including energy measures and investments. The draft, prepared by the Ministry of Energy, was approved by the EU last December, with the first payment from Brussels worth around HUF 300 billion (EUR 776 million) arriving at the end of 2023. The ministry has also indicated that it is working on a call for proposals to support the expansion of the domestic e-charging infrastructure.

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Via Világgazdaság; Featured image via Pixabay

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