In a strictly economics/geopolitical view: It's a loan program, so long term it is net positive on interest alone. If the money is used to procure eu-made equipment, as is implied, it will bring manufacturing to EU and finance European R&D as well (where not säl of it will be used in only military applications) Short term it might affect the speed of rearmament which would be bad in an armed conflict. On the other hand, a bigger market will allow bigger investments, which might add production capacity sooner, so it might not add as much time as feared.
In short, it seems to achieve what the tariffs what touted to accomplish without all the drama and negatives associated with tariffs.
Morally it depends on your opinion of a states right to defend itself.
It's banning new sales. Not pre-existing cars. Besides, used BEV prices are coming down too with 6 year old cars just coming down below 10k€. That's kinda important, as 2020 saw a big uptick in number of available models and cars sold.
So given that, why aren't you asking for a beat* up ICE-car today for anyone that can't afford one but needs one today?
And if you really need a car, you probably drive quite a bit and if so, you really should look at EVs anyways since the running costs are a good deal lower.