Overview

• Finance Minister Lars Klingbeil proposed letting the ten‑year vehicle tax exemption for battery‑electric cars run through December 31, 2035, with the measure slated for the government–industry summit at the Chancellery.
• The plan would restore access to the full ten‑year relief for new EV registrations in the late 2020s and early 2030s, with the Finance Ministry acknowledging foregone revenue of up to several hundred million euros.
• Klingbeil said limited extensions for specific powertrains such as plug‑in hybrids or range extenders could be considered beyond 2035 only with job guarantees, investment commitments and adherence to climate targets.
• He stressed that the EU’s 2035 target for CO2‑free new cars stands, as coalition tensions persist with Chancellor Friedrich Merz’s camp pushing for changes and SPD figures defending the current framework.
• Industry and labor responses diverged, with the VDA urging swift passage of the tax relief, IG Metall calling for broader support tools, and economist Monika Schnitzer cautioning against policy back‑and‑forth while welcoming the EV tax extension.