A new government subsidy opens up electric car ownership in Czechia

A subsidy for businesses and entrepreneurs will accelerate changes to driving habits by significantly discounting the cost of buying an electric vehicle

William Nattrass

Written by William Nattrass Published on 25.03.2024 17:00:00 (updated on 25.03.2024) Reading time: 5 minutes

Have you ever considered buying an electric car, but been put off by the expense of doing so? Understandably, environmental concerns are often outweighed by the fact that for cost-conscious drivers, the shift from a petrol to an electric-powered vehicle must, first and foremost, be good value for money.

In this context, it’s no surprise that many of the countries with a high level of electric car uptake have relied on extensive government subsidy programs to encourage this shift. Now, Czechia is aiming to emulate their success, introducing significant financial contributions for entrepreneurs and businesses to make “going electric” a more appealing proposition.

One company that’s fully aware of the importance of this new subsidy program is Mercedes-Benz. With one of the highest rates of EV sales among car manufacturers in Czechia, Mercedes’ “compact luxury” EQA and EQB electric models are among those which qualify for the new subsidy, opening up possibilities for luxury driving at a more affordable price tag.

Subsidy to turbocharge demand

Aiming to encourage Czechia’s switch from internal combustion engine to electric vehicles, the Ministry of Industry and Trade has introduced a subsidy that supports entrepreneurs and businesses buying electric vehicles.

As part of the “Electric Mobility Guarantee” initiative, CZK 1.65 billion has been allocated to support purchases of electric cars. For individual buyers, this means a contribution of CZK 200,000 for the purchase of a single electric car, or CZK 300,000 for the purchase of heavier electric vehicles. To be eligible for the subsidy program, cars cannot be worth more than CZK 1.5 million excluding VAT. Applications for the subsidy open at the end of March, with companies of any size as well as individual entrepreneurs eligible to apply.

Another section of the subsidy, worth CZK 300 million, is dedicated to the construction of electric car charging stations. The development of sufficient charging infrastructure is crucial to the widespread adoption of electric vehicles. Taken together, these contributions will enable companies and individuals to fully step into the electric era.

The value cap for cars bought through the subsidy program means support is being targeted at more affordable segments of the automotive industry. This, it’s hoped, will ensure that the contribution benefits ordinary people who are keen to make the switch to electric mobility. There is, after all, a pressing need to widen the appeal of electric cars, as the share of electric vehicle sales in Czechia is significantly below the EU average.

Mercedes-Benz is one of the most successful electric car producers in the country, with a share of electric sales more than twice that of the national average. Mercedes’ electric models range from high-end luxury vehicles, all the way to compact luxury cars which are eligible for the subsidy program.

Affordable Mercedes luxury

You might assume that luxury Mercedes vehicles would be too expensive to be eligible for a government subsidy program. Yet while you’d be right about Mercedes’ emphasis on premium quality, you’d be surprised to learn that the German automotive leader sells various electric cars within the subsidy value range, opening up the chance to become a Mercedes driver for significantly less.

Three models from Mercedes qualify for the new subsidy program: the EQA, EQB, and entry-level EQE Sedan. Significantly, all versions of the updated EQA and EQB model qualify for the Czech government subsidy, including all-wheel drive versions and an optional 7-seater version of the EQB. The subsidy program can also be used for the purchase of a charging station, providing up to CZK 50,000 for an AC charging station, or up to CZK 150,000 for a DC charging station above 40 kW.

The EQA and EQB all-electric compact car family are characterized by sleek SUV bodies, powerful drive, and intelligent technologies. Recent updates make these models even better as an entry point into electric car ownership; a longer range ensured by a streamlined design and resistance-optimized tires means EQA drivers can travel up to 560 kilometers on a single charge. The MBUX user interface, meanwhile, provides enhanced voice control and driving assistance systems with improved sensor technology.

An updated exterior and interior design for both EQA and EQB models includes a new bumper emphasizing the broad vehicle front, and new taillights. Interior innovations oozing quality include a state-of-the-art steering wheel with touch control panels, and trim in brown lime open-pore wood.

Mercedes’ market leadership in electric vehicles ensures easier and more convenient charging through the Mercedes me Charge Plug & Charge function, which enables charging at Plug & Charge-enabled public charging points. No customer authentication is needed; the charging process starts automatically once the charging cable is inserted.

For those looking for a longer, executive-style vehicle, the entry-level EQE sedan also applies for the subsidy. With a range more than 600 km complemented by impressive acceleration and interior comfort, the EQE sedan is a striking luxury model. The new subsidy program gives drivers the chance to experience this kind of premium driving experience for a uniquely affordable price tag.

Applying for and securing the subsidy when purchasing a Mercedes is simple and easy. The entire process is handled by authorized Mercedes-Benz dealerships, with a loan guarantee from Mercedes-Benz Financial Services provided by the National Development Bank. Arranging the subsidy through Mercedes-Benz Financial Services provides the advantage of a competitive interest rate.

To qualify for the subsidy, Mercedes vehicles must be new or less than 6 months from registration, having driven less than 6,000 km. You must own the vehicle for at least 24 months after receiving the contribution. Applicants can be self-employed persons or small, medium and large enterprises from anywhere in Czechia.

Those interested in purchasing a Mercedes using the subsidy should choose their preferred model, then contact a Mercedes-Benz dealer, which will prepare a financing offer and prepare documentation for the subsidy application. After approval by the National Development Bank, you will sign an agreement on the guarantee, then take out a loan and pay for the car. The financial contribution is received after submitting the paid invoice and vehicle registration.

All of Mercedes’ electric car models deliver on the potential for better driving experiences opened up by the switch to electric vehicles. The Czech government’s attempt to encourage a wider societal shift through a groundbreaking subsidy program now presents a win-win opportunity: the chance to become a Mercedes owner for significantly less, all while saving the environment.

This article was written in cooperation with Mercedes-Benz Česká republika s.r.o. Read more about our partner content policies here.

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