In response to lucrative state subsidies for electric vehicle (EV) purchases, the Czech Republic is experiencing a remarkable surge in demand for EVs among business owners. With the opportunity to receive state subsidies of up to 300,000 crowns for purchasing an electric vehicle and an additional 150,000 crowns for a charger, businesses are keen not to miss out on this incentive. According to Martin Feller, Commercial Director of Louda Auto, the number of requests for fully electric vehicles has tripled year-on-year in January, indicating a significant uptick in interest.

This trend is further underscored by Marek Knieža, Executive Director of TipCars.com, who noted a substantial increase in searches for electric vehicles with VAT deduction eligibility on their website compared to the previous year. As part of the ‘Electric Mobility Guarantee’ initiative, businesses can apply for support ranging from 200,000 crowns for a personal car to up to 300,000 crowns for a commercial vehicle up to 4.25 tons starting March. The eligible vehicle’s cost must not exceed 1.5 million crowns, excluding VAT, encompassing popular models like the Škoda Enyaq and Tesla Y or Model 3.

Despite the growing interest, Feller highlights that the numbers, while significant, are not astronomical, with inquiries ranging from single digits to tens for each of their twelve brands of new electric vehicles. Furthermore, subsidies are targeted towards new cars with a maximum of six months since being put into operation and a mileage cap of 6000 kilometers.

David Nerad, Manager for Electromobility at Louda Auto, points out that the most sought-after electric model is the Škoda Enyaq, which has consistently witnessed excess demand over supply. Following closely are models like the ID from Volkswagen and Ionic from Hyundai, with the Dacia Spring standing out as the cheapest electric car on the market. As businesses increasingly explore the benefits of EV adoption, the landscape of transportation in the Czech Republic is poised for a greener and more sustainable future.

Article by Prague Forum