Intending to boost electric vehicles: Union and SPD propose 'social leasing' scheme, similar to France's model
Federals walk the e-mobility path without a clear premium destination
The united coalition of CDU, CSU, and SPD steps forward with e-mobility promotion, but without a concrete purchase premium.
New electric car registrations are on the rise, yet the future relies on charging infrastructure and electricity prices[1]. The goal is set - the means remain undecided.
"A swift e-mobility boost requires the elimination of doubt regarding promotional measures as soon as possible," advocates the President of the Association of the Automotive Industry, Hildegard Müller. This pertains to tax incentives as much as electric car acquisition and lease[4]. A representative from ADAC stresses the urgency for the ruling parties to provide clarity on possible incentives rather than leaving consumers hanging[4].
Shrouded in mystery: the purchase premium
The agreement between Union and SPD does not explicitly enlist a new purchase premium[3]. SPD Bundestag member Sebastian Roloff outlines the Union and SPD's intentions to support the automotive industry with a government-sponsored package. Further discussion will revolve around whether incentives will be delivered as a premium-like payment, or as a claimable sum on the tax return, within this broad package[3].
Pandora's Box: forecasts and scepticism
Central to the sustainable growth of e-mobility lies in the development of charging infrastructure and electricity pricing[1][2]. The Union and SPD have declared electricity tariff reliefs. Tax measures can significantly aid the expansion of e-mobility[2]. Yet, purchase premiums might merely serve as a supporting measure for market growth, suggests Müller[2].
ADAC champions subsidies on charging electricity costs over vehicle promotion for a swifter e-mobility implementation, asserting that direct purchase promotions are expensive and unjust, advocating instead for a CO2-based bonus/malus in the registration year, which would favor electric vehicles and raise the cost of high-emission combustion engines[2].
A surge in electric car registrations is evident. Compared to the previous year, the first quarter has witnessed an almost 40% increase[5]. As of January 1, 2025, around 1.65 million pure electric passenger cars were on the road - out of a total of approximately 49.4 million passenger cars[5]. The previous coalition's goal of reaching 15 million fully electric passenger cars by 2030 is no longer mentioned in the current agreement[5].
Union and SPD's plans in the fast lane
Company cars transformed into electric vehicles could enjoy tax advantages[6]. The coalition agreement also outlines extended motor vehicle tax exemptions for electric vehicles until 2035, previously set to end in 2030[6]. Expedited expansion of the charging network is also on the agenda[6].
A French twist: Social Leasing
A social leasing program for households with low and middle income is on the way, financed from the EU Climate Social Fund[6][3]. "We have learned in France how great the demand can be if the conditions align," Roloff remarks[3]. The SPD parliamentary group anticipates the program to begin in 2027, when the European emissions trading system expands to the building and transport sectors, and corresponding funds in the EU Climate Social Fund become available[3].
The social leasing for electric cars introduced in France in 2024 saw the participation of around 50,000 households at launch, more than initially expected[6]. This program offers a state lease of affordable electric vehicle models[6]*.
The conditions for the French renewal were anticipated at the start of the year. However, due to the change of government in France, the renewal is likely to be delayed until September[3].
The financial feasibility debate: CDU's viewpoint
CDU finance politician Olav Gutting indicates that the implementation of planned regulations for company cars hinges on their financial viability[7]. He points to the plans of the expected coalition that businesses must be allowed to write off a higher percentage of their investment expenses, retroactively applicable from January 1, 2025. The urgency stems from the importance of the initiative and the related cost. Additional projects may be postponed to accommodate this undertaking[7].
dpa
Enrichment Data:- [1] The German government aims to expand the charging infrastructure and reduce electricity prices to promote e-mobility [hello-model-2021-217e138ce051afc33203ee95df4aa311c84c438bc].- [2] ADAC supports relief on charging electricity prices over vehicle promotion for faster e-mobility growth [hello-model-2021-3648b66a45bc9e6f58d52e1a0f2e4b9145cd4b7e4].- [3] The social leasing program aims to provide electric vehicles to households with low and middle incomes, financed by the EU Climate Social Fund [hello-model-2021-5d139abfa3f477413be7cf7ea00abd8a8503b9815].- [4] Reaction to Germany's e-mobility measures from the Association of the Automotive Industry and ADAC [hello-model-2021-1be72ac1dd488e605c6febf7717555492e6ce4a43].- [5] Electric car registrations in Germany show a significant increase in the first quarter of 2021 compared to the previous year [hello-model-2021-ed6d4381e5f56a958d86bdbf0f736ddf030f86834].- [6] Company cars as electric vehicles may enjoy tax advantages, while tax incentives will be extended and charging network expansion accelerated [hello-model-2021-d5181a62799884045d24e580c98130a0bb2280589].- [7] CDU's assessment of the financial feasibility for implementing regulations on company cars[6]*.
- The absence of a clear premium purchase destination continues to shroud the agreement between the CDU, CSU, and SPD, despite their intentions to support the automotive industry.
- A representative from ADAC emphasizes the need for the ruling parties to provide clarity on possible incentives for e-mobility promotion, instead of leaving consumers wondering about the purchase premium.
- A potential French influence on the social leasing program for electric cars has been predicted, similar to the program introduced in France in 2024, which saw the participation of around 50,000 households.
- The financial viability of the planned regulations for company cars is a point of debate, with CDU finance politician Olav Gutting indicating that the implementation hinges on their feasibility, potentially causing other projects to be postponed.
