VDA President Hildegard Müller on tax incentives for electric cars

"We welcome the measures decided by the Federal Cabinet to strengthen the e-mobility location. This is an important and correct signal. It’s urgently needed, especially in view of the abrupt abolition of the environmental bonus at the end of last year and the currently weaker demand for electric vehicles. In particular, the increase in the assessment basis for the reduced company car tax (from EUR 70,000 to EUR 95,000) for purely battery-electric vehicles will help to accelerate the ramp-up of e-mobility in Germany. This will also strengthen the used car market for fully electric cars, because company cars will be available as used cars at a low price after the leasing period of usually three years has expired. The planned introduction of accelerated depreciation for newly registered fully electric vehicles for companies can also support the ramp-up of electromobility.

Now it is important that the Bundestag and Bundesrat quickly adopt the new measures in the parliamentary process. Lengthy negotiations, delays and a watering down of the package as with the Growth Opportunities Act must be avoided. The federal states must also make a clear commitment to promoting e-mobility so that value creation and jobs can be secured in Germany."