Climate policy dashboard

Countries in the database make widespread use of electric vehicle (EV) purchase subsidies, and the targeted assets vary significantly. Most vehicle purchase subsidies support cars, but coverage of other vehicle types is diverse (buses, heavy-duty trucks, light-duty trucks, motorcycles).

Countries in the database take various approaches to subsidising EVs, depending on complementary policies, vehicle type and powertrain. While countries without EV sales mandates or bans on internal combustion engines (ICE) offer the highest average subsidies for cars, buses and trucks are consistently subsidised in countries that apply complementary policies. Among powertrains, battery electric vehicle (BEVs) and fuel-cell vehicles (FCEVs) consistently receive higher support than plug-in hybrids (PHEVs). 

While EV subsidies target both households and firms for car purchases, only firms receive high support levels for purchasing buses and trucks, i.e. vehicle types relevant for commercial activities. The comparison of differences between policy landscapes reveals different approaches between vehicle types. While for cars the lack of mandate and ban is associated with high subsidies, the picture is reversed for trucks, where the lack of both mandates and bans are associated with some of the lowest subsidies. 

Eligibility rules of EV subsidies differ for households and firms. Household schemes use multiple criteria such as asset price, income, and usage factors like mileage, age, autonomy, and weight. They frequently target smaller cars and middle-income households. Firm-focused programs apply fewer and more technical filters, such as asset price, seats, and weight, typically for fleets and light commercial vehicles. Passenger cars face the broadest and most complex conditions, while buses, trucks, and motorcycles are governed by simpler, firm-oriented rules.