The submission of final applications for leasing and rental subsidies under the Priority Program “My Electric” was concluded earlier than announced by the National Fund for Environmental Protection and Water Management (NFOŚiGW) on August 21st. What this means for the leasing industry and its customers is discussed by an expert.
The NFOŚiGW announced on August 21st a temporary suspension of the acceptance of applications in the leasing path of the “My Electric” program – from September 1, 2024, to December 31, 2024. Applications for leasing and renting subsidies under the Priority Program “My Electric” were to be considered only until August 30th. Ultimately, BOŚ (program operator) ended the acceptance of applications on August 23rd. As they argued, the value of the submitted applications exhausted the pool of funds that the bank can currently devote to subsidies. The Polish Leasing Association and the Polish Association for the Rental and Leasing of Vehicles appealed to NFOŚiGW and BOŚ to ensure the continuity of the “My Electric” program and maintain the financial liquidity of the program, particularly ensuring the review of all correctly submitted applications until August 31st, as per earlier declaration. These actions are necessary for leasing companies to fulfill their obligations to customers.
From the “My Electric” program, NFOŚiGW subsidized approximately 25,000 electric vehicles. The total budget of the program implemented from 2021 amounts to PLN 960 million, of which the budget for subsidies for leasing and renting electric vehicles amounts to PLN 660 million, or nearly 70% of the entire budget.
What does the suspension of application acceptance in the “My Electric” program mean for the automotive industry?
Commented by Michał Markiewicz, Director of Business Development at PKO Leasing, and ZPL expert.
Firstly, it is essential to pay attention to the most critical part, in business terms, of the communication issued by the NFOŚiGW – depleting funds in the “My Electric” program does not mean that vehicles registered in the second half of 2024 will not be covered by funding. Interpreting this information suggests that subsidy applications will not be submitted at the stage of concluding the lease agreement, but rather at the earliest in early 2025.
This has its consequences – it may affect potential purchasing decisions of customers considering buying an electric vehicle. This shift in purchasing decisions will be sharply felt by all parties involved in the vehicle distribution and financing process: manufacturers, dealers, financiers. Cars currently in dealer’s stock might sell much harder, and the problem of “last year’s model” will affect them at the beginning of the year. A big challenge for the industry is instability and uncertainty in the long-term business environment, which translates into limited confidence in the RV values of electric vehicles. Any moves that limit demand will not help in stabilizing the situation. What remains is to hope that the decisions made today will not significantly impact the development of electromobility in Poland. Much depends on how quickly and in what form the “My Electric” program will be resumed.
As previously reported by the Ministry of Climate and Environment, new subsidies for electric vehicles are expected to be financed from the Polish National Recovery Plan (KPO). According to the Ministry’s announcements, the new subsidies might start in the fall of 2024. According to the KPO, the subsidy program for electric vehicles is expected to receive 374 million euros, or nearly PLN 1.6 billion.
Source: https://managerplus.pl/zakonczenie-programu-moj-elektryk-ekspert-komentuje-konsekwencje-dla-branzy-68923
