VDIK: Subsidy program sends positive signals – Missed opportunity for used electric cars

The Association of International Motor Vehicle Manufacturers (VDIK) sees the German government’s program as a positive signal for the market ramp-up of electric mobility. The planned support will also enable households with low and middle incomes to switch to electric cars in the future. The VDIK welcomes the fact that the subsidy will now come into effect retroactively for registrations from January 1. At the same time, however, the VDIK sees considerable room for improvement, for example in the inclusion of used battery-electric cars and the level of support for plug-in hybrids (PHEVs).

VDIK President Imelda Labbé: “It is a missed opportunity for social and affordable mobility that the federal government is not including subsidies for young used electric cars in the program. This is because families and households with low and middle incomes usually buy used cars. A used electric car also generally replaces a combustion engine car and thus supports the federal government’s climate targets. Leasing customers will only benefit from the subsidy to a limited extent due to falling residual values.”

Promoting the used car market would be essential, as the remarketing of young used cars is a key factor in economically attractive leasing conditions in the new car market. In the case of new vehicles, the promotional effect is partially negated, as the leasing rate is not lower despite the subsidy due to lower residual values. For the used car market, this means a devaluation of inventory for customers, dealers, and manufacturers, as well as sluggish sales. The VDIK is calling for the reassessment promised by Minister Schneider in 2027 to be brought forward, with a strong focus on the development of residual values.

The VDIK also takes a critical view of the complex process of verifying household income, especially in cases where several members of the household are liable for tax. A new portal, which could be made available from May 2026 at the earliest, must not lead to uncertainty and delays in the provision of subsidies.

The VDIK welcomes the subsidy for plug-in hybrids, although a higher subsidy would be desirable, as PHEVs have a long electric range for everyday mobility.

It is a positive sign for affordable and climate-neutral mobility that the subsidy includes brands from all manufacturers and is not limited to vehicles produced in Europe. International vehicle manufacturers in particular offer a wide range of affordable electric vehicles, making the transition to electric mobility attractive even for buyers with low and middle incomes.

The VDIK also supports Minister Schneider’s call at the press conference for the rapid expansion of the charging infrastructure and cheaper fast-charging electricity. A comprehensive charging infrastructure and affordable electricity are essential to enable the ramp-up of electric mobility in line with the subsidies.