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Volvo V90 Recharge Copyright Volvo

Volvo responds to BAFA requirements

From January 2022, the regulations for state funding for plug-in hybrids in Germany will be significantly tightened. This primarily affects the large and heavy SUV models with a range of less than 60 kilometers. In order to continue receiving financial support from the Federal Office of Economics and Export Control (BAFA), plug-in hybrids with approval from January 2022 must extend their electric range to 60 kilometers.

The plug-in SUV as a company car is particularly popular because of the subsidies for new acquisitions and tax incentives. Instead of the 1 percent rule on the gross list price, these models are taxed at just 0,5 percent. This regulation applies to list prices below 65.000 euros. From January 2022, the environmental bonus will only be granted with an electric range of 60 kilometers and from 2025 of at least 80 kilometers. The principle is: "Only models that either emit a maximum of 50 grams of CO2 / km or have a purely electric range of at least 60 kilometers will be funded."

Larger battery capacities for 60 and 90 series

The day of delivery (first registration) is decisive for the funding. The subsidy amounts to 40.000 euros for purchase prices below 6.750 euros, above that up to 65.000 euros there is a bonus of 5.625 euros. Opinions differ on the purpose of promoting large and heavy SUVs; according to some dealers, there are actually many SUV plug-in hybrids that have never been charged from the socket. The cable is usually still in its original packaging unused in the trunk in the case of leasing returns or trade-ins. The battery is usually charged using recuperation or the combustion engine.

Volvo Recharge plug-in hybrid models - Copyright Volvo
Volvo Recharge plug-in hybrid models - Copyright Volvo

So that the manufacturers do not suffer a competitive disadvantage, the battery capacities for electric propulsion are now being hastily renewed. According to its own information, Volvo has increased the battery capacity for the Volvo Recharge models of the 60s and 90s series to a total capacity of 18,8 kWh and equipped them with a 107 kW (145 PS) electric motor. This should enable an electric range of up to 90 kilometers to be achieved.
“Driving a plug-in hybrid is often a stepping stone to all-electric driving,” says CEO Henrik Green. “We believe this upgrade will show many that electric driving is the future. This brings us closer to our goal of fully electric driving in 2030. "

The refreshed Volvo S90 Recharge T8 plug-in hybrid in Platinum Gray - Copyright Volvo
The refreshed Volvo S90 Recharge T8 plug-in hybrid in Platinum Gray - Copyright Volvo


The requirements for funding for plug-in hybrids will be moderately increased, and manufacturers will adjust their battery capacities. But the pure, large-format electric vehicles were also in the starting blocks at the IAA Mobility. In the long term, a wider range of electric and hydrogen SUVs can be expected from 2025.


Cover picture - Volvo V90 Recharge Copyright Volvo

N. Hawthorn
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