Overview
- Under current law, battery‑electric cars first registered by 31 December 2025 remain exempt from motor‑vehicle tax for up to ten years but no later than 31 December 2030.
- If the exemption is not extended, new EVs registered from 1 January 2026 would pay the regular weight‑based Kfz‑steuer, with estimates of about €50 a year for a BMW i3 and over €150 for heavy electric SUVs.
- Finance Minister Lars Klingbeil is assessing revenue options, and a signal on the policy is expected in discussions planned with industry and unions at an upcoming Autodialog.
- Auto industry chief Hildegard Müller warns that letting the break lapse could leave fully electric cars taxed higher than plug‑in hybrids, risking confusion and dampening demand.
- Analysts foresee a late‑2025 registration rush followed by a slump, while the ADAC argues that lower purchase prices, cheaper charging and reliable local infrastructure would do more to boost uptake than the tax waiver alone.