Photo-illustration: Unsplash (thomas-kelley)

With subsidies for electric and hybrid vehicles, the Serbian government wants to encourage individuals to opt for environmentally friendly cars. Thus, in 2020, the regulation on the conditions and method of implementing the subsidized purchase of new vehicles that have exclusively electric and hybrid drive, as well as cars that, in addition to the internal combustion engine (IC engine), also run an electric power unit (hybrid drive) was adopted. Funds in the amount of 294 million dinars were allocated this year, which is twice as much as last year. The money will be disbursed by the Ministry of Environmental Protection, based on the received applications for funding, up to available funds.

Companies/legal entities, small business owners and natural persons have the right to subsidized purchase of vehicles, and they can submit their application by October 31.

This right is not available to companies/legal entities and small business owners who have or will have the right to subsidized purchase of passenger vehicles to buy new taxis to be used as public transport.

The regulation focuses on the fact that the subsidies are valid for new vehicles, those that have never been used nor registered until the submission of the application for subsidized purchase.


Disbursement of subsidies

As explained, legal entities, small business owners and natural persons who buy a vehicle in instalments are required to conclude a financial leasing contract before the subsidy is disbursed and pay an amount of at least 15 per cent of the purchase price of the new vehicle to the financial leasing provider as a down payment for the approval of the leasing contract.

Photo-illustration: Unsplash (martin-katler)

If they buy a new vehicle with their funds, the subsidy is disbursed after submitting proof of the paid part of the purchase price. Then, within 15 days from the date of receipt of the decision, they are obliged to submit to the Ministry a vehicle purchase agreement, an advance invoice (if an advance was paid), a preliminary invoice and proof of payment of the remaining purchase price of the vehicle, i.e. a relevant bank statement.

Suppose the vehicle is purchased through financial leasing. In that case, they must submit to the Ministry a contract on financial leasing, a confirmation from the leasing company about the down payment amount and proof of the payment made within 15 days of receiving the Ministry’s decision.

Awarding subsidies is terminated if the amount of allocated funds in the current year is insufficient for the approval of all properly submitted applications.

For the fourth consecutive year, the Ministry of Environmental Protection facilitated the purchase of electric and hybrid cars as part of implementing measures to improve air quality and the quality of the environment. The data also show that citizens understand the importance of more environmentally friendly transport. Every year, an increasing number of such vehicles are purchased with the help of state subsidies. In 2020, that number was 112. In 2021, it was 504; in 2022, a record 715 vehicles were purchased with the help of state subsidies.

Prepared by: Milica Radičević

Read the story in the new issue of the Energy portal Magazine ELECTROMOBILITY