But you don't make money by reducing the number of cars. You make money by increasing the number of cars. The car lobby would never approve a plan that resulted

But you don't make money by reducing the number of cars. You make money by increasing the number of cars. The car lobby would never approve a plan that resulted in fewer cars overall unless it can be done in a way to still increase profits (e.g. by reimbursing manufacturers for lost sales). When the German government wanted to reduce the number of fuel inefficient old cars on the road it didn't just pass a bill permitting cities to create "clean air zones" placing limits on particles in car exhausts, they also created a subsidy "scrap bonus" for trading in older vehicles when buying new ones (instead of resale those cars would then be scrapped for which the salesperson would be reimbursed). In a way the "e-vehicle" subsidies are even worse because they don't even require a trade-in, they just subsidize putting more cars on the road and especially buying smaller electric cars for short distance commutes that are more likely to move people off public transit or bikes than existing ICE cars.