Overview
- Germany and six other EU countries are urging the Commission to allow plug‑in hybrids and range‑extender vehicles after 2035, softening the phase‑out of new cars with tailpipe CO2.
- The European Commission is preparing an auto support package that could ease the 2035 rule, with the announcement date now uncertain and potentially slipping into January, according to reports and an EU transport commissioner.
- Berlin’s coalition has outlined roughly €3 billion in private EV purchase incentives from 2026, subject to Commission approval, after last year’s abrupt subsidy halt depressed sales.
- The VDA forecasts a 2% rise in Germany’s 2026 car market to about 2.9 million registrations, with BEV sales rising around 30% to 693,000 and PHEV registrations falling 5% to 286,000, all contingent on quick rollout of the new support.
- Fleet dynamics are shaping the transition, with strong PHEV demand driven by company‑car tax rules and major rental operators warning that charging gaps, costs and potential EV quotas would strain their businesses.