It is in Hungary’s economic interest to successfully participate in the imminent change the car industry is facing, Minister for National Economy Mihály Varga said at the E-mobility Forum 2016, an event organized to mark the European Mobility Week.

At the conference, the Minister announced that in addition to existing incentives, the Government has earmarked HUF 2bn from the state budget to finance 21 percent of the gross purchasing price, up to HUF 1.5 million, of new electric cars and commercial vans.

As electric vehicles and environmentally friendly technologies are gaining ground, we are becoming more and more involved in the fight against climate change and global warming, and we are also contributing to economic and job growth, Mihály Varga stressed. The Government’s comprehensive e-mobility concept, the Ányos Jedlik Plan, includes all those measures, incentives and regulations that are required for the promotion of e-mobility, he added. Up to 2020, the Government aspires to install 3 000 public charging points in a bid to make each Hungarian region accessible with electric vehicles.

In order to promote e-cars, the Government had already added some regulatory incentives: green license plates have been introduced, legislation on the installation and operation of charging facilities has been simplified and several tax incentives have been offered, he said. By 2020, the Government expects the number of environmentally friendly vehicles to reach 30 000. Industry experts predict that the price of accumulators and consequently that of electric cars will decline by 2020 to a level which will make these competitive compared to traditional cars even without subsidies. That has prompted the Government to allocate HUF 2bn in this year’s budget and possibly HUF 3bn in next year’s budget to support the purchasing of purely electric cars and small commercial vehicles, Mihály Varga stated. This year’s amount is anticipated to contribute to the purchasing of 1300 electric motor vehicles.

Natural and legal entities, economic units, sole proprietors, civic organizations, local governments, statutory public bodies and budgetary institutions are entitled to apply for the funds. As a special condition, the incentive applies to motor vehicles with a gross purchasing price of not more than HUF 15 million (EUR 48 400). Terms and conditions of the scheme are set to be published this week at and

(Ministry for National Economy)