German Chancellor Angela Merkel’s coalition has followed the lead set by French president Emmanuel Macron in increasing its grant funding for electric vehicle (EV) buyers as part of its COVID-19 stimulus measures.

German Chancellor Angela Merkel and German Finance Minister and Vice-Chancellor Olaf Scholz agreed on a stimulus package worth €130 billion euros (£116.3bn) to boost its economy’s recovery from the coronavirus pandemic.

And, as in France, increased for EVs and hybrids was a core part of the plan, with a lowering of the nation’s renewable energy surcharge also helping boost plug-in vehicle uptake via reduced electricity bills in 2021 and 2022.

The move should add pressure for the UK government to deliver its own stimulus for the automotive sector, with suggestions that “calls for Government intervention in the automotive retail sector is only going to grow”.

The German government has doubled its share of the existing purchase incentive for electric cars and hybrid cars, paying a grant of €6,000 (£5,370) for a pure EV in addition to an OEM-backed subsidy of €3,000 (£2,685).

In-line with its eco-friendly car purchase incentive scheme, the German government also plans to reform its tax system to ensure higher-emitting vehicle pay higher taxes from January 2021.