VDIK: The budget does not fully cover the funding commitments from the coalition agreement to ramp up electric mobility

The Federal Cabinet has approved the government’s draft for the 2026 federal budget and the financial plan for the years 2025 to 2029. Unfortunately, the plans fall significantly short of the requirements for the necessary market ramp-up of e-mobility and the expansion of the transport infrastructure.

VDIK President Imelda Labbé: “Although more battery electric vehicles were registered in the first half of 2025 than in the strongest comparable period of 2023 to date, the registration figures for purely electric vehicles (BEVs) remained well below the level required to achieve the EU fleet limits. In addition to the additional burdens of tariffs and transformation costs, failure to meet CO2 targets would be economically unsustainable for companies in the automotive industry.”

However, the measures required to achieve this are not included in the draft budget approved by the cabinet. There is still a lack of decisive incentives, particularly for private households, to make the switch to electric vehicles more attractive. Although the planned reduction in grid fees will provide some relief at the charging station, other key measures are still lacking. Despite widespread criticism, the reduction in electricity tax for private consumers announced in the coalition agreement is still not being implemented.

The Association of International Motor Vehicle Manufacturers (VDIK) is calling on the federal government to take additional measures to accelerate the ramp-up of electric mobility. In order to ensure the promised predictability, the extension of the motor vehicle tax exemption beyond 2025 must be implemented urgently.

“We need a long-term industrial master plan in which the automotive industry, politicians, the energy sector, and local authorities define the measures for expansion and the framework conditions. Electric car customers need incentives that preserve residual value, a comprehensive charging infrastructure, and affordable electricity. Only then will the switch to electric mobility become attractive and plannable on a broad scale,” continued VDIK President Imelda Labbé.

The necessary course has also not been set in the area of transport infrastructure. Despite earlier announcements, the budget does not provide for a sufficient increase in investment in the road network. Yet sustainable expansion is urgently needed: the demands on roads and bridges will continue to rise, but the condition of the infrastructure will increasingly fail to meet these demands.