Subsidies for the purchase of electric vehicles are a good measure, but it is necessary to include "Plug-in" hybrids

The Serbian Association of Vehicle and Parts Importers evaluates the Government of the Republic of Serbia's regulation from February 1 on subsidizing the purchase of new vehicles exclusively with electric propulsion as good news. However, from an environmental impact perspective, it is necessary to include "plug-in" hybrids.

For 2024, the government allocated 170,000,000 dinars, and the subsidy amount depends on the type of vehicle:

- For the purchase of an electric moped or light tricycle: 250 euros in the equivalent value in dinars.
- For the purchase of electric motorcycles, motorcycles with side seats, heavy tricycles, light and heavy quadracycles: 500 euros.
- For electric passenger vehicles with up to nine seats and electric commercial vehicles with a maximum permissible mass of up to 3.5 tons: 5,000 euros.

The Serbian Association of Vehicle and Parts Importers believes that subsidies should also be granted for the purchase of "plug-in" hybrids, as they are close to zero emissions of CO2. These vehicles, driven solely on electric motors, can achieve a range of 50-70 km, meaning they can be driven almost exclusively on this type of propulsion in urban environments where pollution is most significant. From an environmental protection standpoint, it is logical for them to be treated as environmentally friendly vehicles, and subsidies can be used for their purchase.

Increase in subsidy funds over the years

The Serbian Association of Vehicle and Parts Importers analyzed the structure of subsidy spending in the period 2020-2023 and found that the funds were increased each year. Except for 2020, which was the base year, the funds were almost entirely utilized, indicating growing interest from citizens and businesses.

2020:

- Budget: 120,000,000 dinars
- Utilized: 30,364,975.16 dinars (25.30%)
- Subsidized purchase of 112 vehicles (29 by individuals, 83 by legal entities)

2021:

- Budget: 168,000,000 dinars
- Utilized: 165,069,907.78 dinars (98.26%)
- Subsidized purchase of 504 vehicles (230 by individuals, 274 by legal entities)

2022:

- Budget: 260,511,000 dinars
- Utilized: 259,655,091.15 dinars (99.67%)
- Subsidized purchase of 715 vehicles (277 by individuals, 438 by legal entities)

2023:

- Budget: 444,000,000 dinars
- Utilized: 433,277,961.55 dinars (97.59%)
- Subsidized purchase of 1,144 vehicles (348 by individuals, 796 by legal entities)

Source of data: Ministry of Environmental Protection of the Republic of Serbia