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[BUSINESS] · Germany · 13 sources

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Germany debates EV tariffs and used electric vehicle subsidies

Germany's automotive sector is facing significant shifts regarding electric vehicle (EV) policy and market competition. Federal Environment Minister Carsten Schneider has called for tariffs on Chinese plug-in hybrids to ensure a ‘level playing field,’ noting that while battery-electric vehicles already face compensatory tariffs, plug-in hybrids currently do not.

In the consumer market, experts highlight the growing focus on used EVs as fuel prices rise. While direct purchase premiums for used vehicles are currently unavailable, buyers can benefit from temporary vehicle tax exemptions for cars first registered before the end of 2030. The Verband der Automobilhändler Deutschlands (VAD) is advocating for the expansion of state subsidies to include young used EVs, up to 14 months old, to make them more affordable for private customers.

Simultaneously, the domestic industry faces internal pressure. At the Volkswagen plant in Baunatal, Hessian Economic Minister Kaweh Mansoori criticized the use of tax money to finance Chinese vehicles that flood the market, amid discussions regarding potential plant closures and job cuts at various Volkswagen locations.

Entities

ARAG · Burkhard Weller · Carsten Schneider · Germany · Kaweh Mansoori · Tesla · Verband der Automobilhändler Deutschlands · Volkswagen

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