The Association of International Motor Vehicle Manufacturers (VDIK) welcomes the fact that the German government is now taking initial measures to implement its plans from the coalition agreement. The initiative of the Federal Ministry of Finance for an immediate tax investment program includes positive signals for strengthening locations and promoting investment. However, the association considers the effectiveness for the ramp-up of electromobility to be too low, as the planned measures are limited exclusively to the purchase of commercially used electric vehicles.
“We see the investment program as a strong first step towards boosting the German economy. However, this tax measure will do too little to ramp up electromobility. This is because it only addresses the commercial business and even there not the leasing business, which accounts for the majority of registrations. That is why the VDIK continues to urge the rapid implementation of the measures for private customers and the used car market announced in the coalition agreement,” says VDIK President Imelda Labbé.
The planned immediate action program will allow companies to deduct 75% of the cost of purchasing a battery-powered electric vehicle for business use from tax, 10% in the following year and 5% in both the third and fourth year. This special regulation is to apply to purchases between July 2025 and December 2027. However, this regulation will not have a major impact on the registration figures of battery electric vehicles, as the regulation only covers vehicle purchases and not vehicle leasing.
The VDIK is also calling for plug-in hybrids to be included in the investment program, as many businesses and companies are not yet in a position to switch directly to an electric vehicle due to their mobility requirements. Plug-in hybrids can make a noticeable contribution to achieving climate targets compared to pure combustion engines if used appropriately.
The draft bill again includes an increase in the gross list price from 70,000 to 100,000 euros for the taxation of company cars at 0.25 percent. Although this measure, which was already planned by the previous government, is to be welcomed, it will also not bring a large number of new and affordable electric vehicles onto the market.
In addition to promoting commercial and fleet vehicles, it is now particularly important to implement measures for private buyers and for the used car market. We need concrete support measures for electric cars and lower charging prices. Before the summer break, it should be clear to every car buyer what the long-term costs of buying or leasing an electric car will be.
