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Germany’s Coalition Confirms E-Mobility Support, Leaves Purchase Premium Unclear

The CDU/CSU/SPD government pledges tax benefits, charging infrastructure expansion, and a Social-Leasing program, but debates continue on direct purchase incentives.

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Die Produktion von E-Autos im VW-Werk Emden.
Dr. Dominik von Achten, Vorstandsvorsitzender von Heidelberg Materials, Hildegard Müller, Präsidentin des Verbandes der Automobilindustrie (VDA), Dr. Markus Steilemann, Vorstandsvorsitzender von Covestro, diskutieren gemeinsam mit Moderatorin Petra Pinzler, DIE ZEIT, auf dem Podium zum Thema „Wettbewerbsfähigkeit: Wie können sich europäische Schlüsselindustrien auf den globalen Märkten behaupten?“ auf der Konferenz EUROPE 2025 bei AXICA Berlin am 26.03.2025.

Overview

  • Germany’s coalition government has committed to promoting electric vehicles through tax benefits, charging infrastructure upgrades, and a Social-Leasing program for low- and middle-income households.
  • The coalition agreement does not explicitly include a revival of the Umweltbonus purchase premium, leaving uncertainty about direct purchase incentives.
  • First-quarter 2025 registrations of electric vehicles rose nearly 40% year-on-year, signaling a recovery from the 2024 slump caused by the subsidy cut.
  • Industry leaders, including VDA President Hildegard Müller, urge the government to clarify incentive measures to prevent consumer hesitation.
  • The Social-Leasing program, inspired by France’s model, aims to launch by 2027 with EU Climate Social Fund support, targeting equitable access to EVs.