Schwarz Gruppe pauses electric company car purchases in Germany

The Schwarz Gruppe, owner of the Lidl and Kaufland retail chains, announced it will temporarily stop ordering fully electric company cars for its German employees and will revert to gasoline and diesel models. The decision, explained as a response to volatile conditions in the German automotive market and changing regulatory frameworks, affects roughly 13,000 service vehicles. The group buys its fleet outright and resells the cars later, exposing it to rapid depreciation of electric‑vehicle values, which can fall to 47‑51 % of the original price after three years.

Employees lose the tax advantage that makes electric company cars attractive in Germany – the taxable benefit for an electric car is only 0.25 % of the list price versus 1 % for a combustion‑engine vehicle. The move comes as the European Union is considering mandatory electric fleets for large companies. At the same time, the German government has extended the Elektromobilitätsgesetz (EmoG) until 2035, preserving privileges for electric cars such as preferred parking, reduced or free parking fees, and access to bus lanes. A separate tax‑depreciation measure (Turbo‑AfA) also aims to support electric‑vehicle adoption.