Overview

• Germany's new CDU/CSU–SPD coalition has committed to promoting e-mobility but has not finalized whether incentives will take the form of direct purchase premiums or tax-based relief.
• Industry groups, including the VDA, warn that prolonged uncertainty over the support package is discouraging consumers from purchasing electric vehicles.
• Electric vehicle registrations in Germany surged nearly 40% year-on-year in Q1 2025, rebounding from a slump caused by the abrupt end of the Umweltbonus in late 2023.
• Proposed measures include tax advantages for electric company cars, extended tax exemptions for EVs until 2035, and a social leasing program for low-income households modeled on France's system, set to launch by 2027.
• The coalition's plans for charging infrastructure expansion and electricity price relief are seen as critical to sustaining e-mobility growth, alongside fiscal incentives.