Overview
- The tax break for newly registered battery-electric cars is scheduled to lapse on January 1, 2026 unless the government formally extends it.
- Finance Minister Lars Klingbeil is reviewing revenue options with a decision expected around the planned industry–government 'Autodialog'.
- The coalition agreement promised an extension to 2035, and the Transport Ministry signals support for keeping the incentive, though the Finance Ministry leads on the file.
- The VDA warns expiry would slow electrification and could mean fully electric cars are taxed more than plug‑in hybrids.
- If the break ends, annual Kfz tax would be weight‑based—about €50 for a light BMW i3 and over €150 for heavy SUVs—with observers expecting a late‑2025 registration surge followed by weaker demand.