Overview

• A Finance Ministry spokesman said the 2035 extension is in the coalition agreement and its implementation is under review, with an Autodialog and an industry summit scheduled for October.
• The Transport Ministry signaled support for keeping the incentive in place for private buyers but noted the Finance Ministry is leading the process.
• Under current law, pure electric cars first registered by 31 December 2025 are exempt from Kfz tax until 31 December 2030, after which they are taxed by vehicle weight.
• VDA president Hildegard Müller warned that letting the exemption lapse could dampen demand and even leave fully electric cars taxed higher than plug-in hybrids.
• Dealer association chief Thomas Peckruhn called the potential loss a major blow for the trade, and ADAC/KBA data show EV registrations swing sharply in response to policy changes.