Schwarz Group German EV fleet pause

In late July 2026 the Schwarz Group, the retailer behind Lidl and Kaufland, announced a temporary halt to new fully electric vehicles for its German service fleet, citing rapid depreciation and uncertainty over subsidies. The pause, limited to Germany, affected about 13,000 company cars and was reinforced by Lidl’s statement on market volatility and regulatory changes. The group buys its fleet outright and resells the cars, exposing it to depreciation that can reduce EV values to roughly 47‑51 % after three years, making internal‑combustion and hybrid models comparatively cheaper. Employees also lose the favorable tax treatment for EVs (taxable benefit 0.25 % of list price versus 1 % for combustion cars). While purchases and charging projects continue elsewhere, the German government has extended the Elektromobilitätsgesetz (EmoG) until 2035, preserving perks such as preferred parking and bus‑lane access, and a Turbo‑AfA depreciation measure aims to support EV adoption. The pause highlights the tension between fiscal incentives and fleet economics as the EU debates mandatory EV‑fleet requirements for large firms.