The programme supporting the procurement of electric vehicles by businesses could kick off in February, announced the Ministry of Energy (EM) on Sunday, 10 December. According to the ministry’s plans, domestic enterprises can apply for non-refundable state support from a budget of 30 billion HUF for the purchase of purely electric cars, light trucks, or minibuses.
In the public statement, it is outlined that, depending on the battery capacity, support to the tune of 2.8-4 million HUF can be obtained for the acquisition of a vehicle. The draft of the call for proposals encouraging green energy utilization is currently open for public opinion, and the final announcement is expected to be published by early next year. Applications are anticipated to be accepted for 13 months starting from 1 February 2024.
The ministry points out that the future of the Hungarian economy lies in green energy.
The transportation sector is responsible for about one-fifth of pollutant emissions, with the majority of this environmental burden caused by road traffic. Encouraging the adoption of electric vehicles is a crucial tool in greening this sector. Modern vehicles that run on electricity can be used without air pollution, are quieter than those powered by internal combustion engines, and can save owners on operational and maintenance costs. According to the ministry’s data, nearly 85,000 green-registered vehicles are currently on Hungarian roads, with more than half being purely electric cars. The government, through the programme currently under public consultation, encourages businesses to purchase electric vehicles.
The funds provided in aid significantly reduce the price advantage of traditionally powered cars, making the acquisition of electric cars, minibuses, and trucks more attractive and economically viable,
emphasizes the Ministry of Energy. Hungarian enterprises and individual businesses providing taxi services or employing at least two people can apply for support in the upcoming call for proposals. Fleet service providers will have a separate programme offering discounted loans for the procurement of electric vehicles. Companies with fewer than ten employees can acquire up to one vehicle, those with 10-49 employees can obtain up to five, those with 50-249 employees can get up to ten, while larger companies can acquire up to 16 vehicles. The minimum support value per company is therefore 2.8 million HUF, and the maximum available funding is 64 million HUF.
According to the ministry’s information, the disbursement of advance financing to Hungary from the credit portion of the National Recovery Plan may arrive as early as the beginning of next year, following the recent approval by the Council of European Union Finance Ministers of the earlier decision of the European Commission. Within the REPowerEU chapter, encompassing energy measures and investments, Hungary can receive nearly €1 billion in two instalments in 2024. The government plans to allocate a total of 60 billion HUF from the REPowerEU funds, in addition to supporting corporate vehicle procurement, for expanding the domestic electric charging network to promote the green transformation of transportation.
Sources: Hungarian Conservative/MTI/EM