Germany maintains strong company car culture despite mobility shifts

A survey by WTW involving 359 German companies reveals that company cars remain a dominant employee benefit in Germany. Approximately 83% of German firms offer a company car, a figure significantly higher than the European average of 72%.

While 46% of German companies allow employees to choose between a vehicle and a financial alternative—compared to a 29% European average—the majority still opt for the car. Only about 15% of employees who have the choice select the cash option.

Despite the rising popularity of alternative mobility options, such as public transport subsidies (28%), bicycles (23%), and e-bikes (20%), the company car remains a central part of compensation. This is partly due to the perceived value of the package, which includes insurance, maintenance, and repairs, and the specific tax treatments available, such as the 1-percent rule for internal combustion engines and more favorable rates for electric vehicles.