Published: December 11 2023
The Hungarian government has announced plans to launch a program in February 2024 that will support businesses in purchasing electric vehicles. This program will provide non-refundable state contributions from a budget of HUF 30 billion (EUR 78.7 million) for the purchase of pure electric cars, vans, or minibuses.
Eligibility and Application
Hungarian companies, as well as individual businesses providing taxi services or employing at least two people, will be eligible to apply for the program. Fleet service providers will have the opportunity to apply for a preferential loan specifically for the purchase of electric vehicles. The program will have varying vehicle purchase limits based on the size of the business, with smaller companies able to purchase up to one vehicle and larger companies able to purchase up to 16 vehicles.
Reduction in Price Advantage
The subsidies provided through this program are aimed at significantly reducing the price advantage of conventional cars, making electric vehicles a more attractive and affordable option for businesses. This move is expected to further promote the adoption of electric vehicles in Hungary.
Expansion of Electric Charging Network
As part of the government's efforts to support green transport, a total of HUF 60 billion (EUR 156 million) from the REPowerEU framework will be used to expand the domestic electric charging network. This investment will contribute to the growth of the electric vehicle infrastructure in Hungary.
Funding Availability
Advance funding from the loan portion of the National Recovery Plan is expected to be made available to Hungary in early 2024. This funding, amounting to nearly EUR 1 billion in two tranches, will support energy measures and investments, including the promotion of electromobility.
By implementing this program, the Hungarian government aims to accelerate the adoption of electric vehicles among businesses and contribute to a greener and more sustainable transportation sector.
Questions & Answers
What is the purpose of the government program mentioned in the article? The government program aims to support Hungarian businesses in purchasing electric vehicles.
When is the program expected to be launched? The program is expected to be launched in February next year.
Who is eligible to apply for non-refundable state contributions under the program? Hungarian companies and individual businesses providing taxi services or employing at least two people can apply for support under the program.
What vehicles can be purchased using the state contributions? Hungarian companies can use the state contributions to purchase pure electric cars, vans, or minibuses.
How much budget has been allocated for the program? A budget of HUF 30 billion (EUR 78.7 million) has been allocated for the program.
How long will the applications be open for? Applications are expected to be open for thirteen months, starting from February 1, 2024.
How many electric vehicles are currently on the roads in Hungary? According to the Ministry of Energy, there are already nearly 85,000 electric vehicles on the roads in Hungary, with more than half of them being pure electric cars.
What is the goal of the subsidies provided under the program? The subsidies aim to significantly reduce the price advantage of conventional cars, making the purchase of electric vehicles more attractive and affordable.
Can fleet service providers apply for support under the program? Yes, fleet service providers will be able to apply for a preferential loan for the purchase of electric vehicles in a separate program.
Are there any restrictions on the number of vehicles that can be purchased by businesses based on their size? Yes, businesses with less than 10 employees can purchase up to one vehicle, between 10 and 49 employees can purchase up to five vehicles, between 50 and 249 employees can purchase up to ten vehicles, and larger companies can purchase up to 16 vehicles.
When will the advance funding from the loan part of the National Recovery Plan be available? Advance funding from the loan part of the National Recovery Plan could be made available to Hungary as early as the beginning of next year.
What other investments will be made using funds from the REPowerEU framework? In addition to supporting corporate vehicle procurement, the government will use a total of HUF 60 billion (EUR 156 million) from the REPowerEU framework to expand the domestic electric charging network for green transport.
