Top German automakers halt sales of some plug-in hybrid cars: report

FILE PHOTO: A Volkswagen logo is pictured during the Volkswagen Group's annual general meeting in Berlin, Germany, May 3, 2018. REUTERS/Axel Schmidt

(Reuters) - Volkswagen AG <VOWG_p.DE>, BMW AG <BMWG.DE> and Daimler AG-owned Mercedes-Benz <DAIGn.DE> have halted sales of some of their plug-in hybrid cars in Europe in the wake of new emissions regulations, Automotive News reported on Thursday.

The new Worldwide Harmonized Light Duty Vehicles Test Procedure (WLTP) regime, which went into effect on Sept. 1, gives higher CO2 readings than the old New European Driving Cycle (NEDC) system, pushing vehicles into a higher tax bracket.

The new rules could take away tax incentives offered to cars with ultra-low emissions in certain countries, the Automotive News report said.

FILE PHOTO: The BMW logo is seen on a vehicle at the New York Auto Show in the Manhattan borough of New York City, New York, U.S., March 29, 2018. REUTERS/Shannon Stapleton/File Photo

Automakers have to decide whether the extra cost to fit a bigger battery is worth the incentives given, according to the report.

The introduction of WLTP has forced some carmakers to withhold non-conforming models from showrooms, prompting them to discount other models to defend their market share.(https://reut.rs/2QYxxKH)

FILE PHOOTO: The logo of Mercedes-Benz Cars is seen at the launch of the Mercedes-Benz research and development centre in Tel Aviv, Israel November 16, 2017. REUTERS/Amir Cohen

(Reporting by Bharath Manjesh in Bengaluru; Editing by Maju Samuel)