(de-news.net) – The Federal Government’s forthcoming subsidy program for private electric vehicle purchases is expected, according to German media reports, to provide financial support ranging from 1,500 to 6,000 euros per vehicle. Eligibility will be determined by a combination of factors, including the type of vehicle selected, the size of the applicant’s household, and the applicant’s income level, thereby aligning the initiative with broader socioeconomic and environmental policy goals. The program is structured to allow retroactive applications, which indicates an intention to ensure that early adopters are not disadvantaged during the administrative rollout period. In addition, an online portal—designed to streamline access, simplify documentation procedures, and standardize the submission process—is anticipated to be operational in May. The key requirement for subsidy approval is proof that the vehicle was initially registered on or after January 1, 2026, a date that effectively marks the formal starting point of the policy’s implementation.
Federal Environment Minister Carsten Schneider, who is expected to present the program in detail in the coming days, has stated that the funding envelope is projected to support approximately 800,000 vehicles over a three- to four-year period. This projected distribution underscores the government’s objective of accelerating the transition toward low-emission transportation while providing predictable incentives for consumers and manufacturers alike. Schneider has emphasized that the measure is intended not only to encourage private adoption of electric vehicles but also to strengthen the domestic automotive industry, which he argues already offers a robust selection of competitive electric models. Preliminary registration statistics from the previous year indicate that roughly 80 percent of newly registered battery-electric vehicles and plug-in hybrids in Germany originated from European production facilities, a pattern that policymakers interpret as evidence of the sector’s regional competitiveness and resilience.
Simultaneously, proposals advanced within the Social Democratic Party to increase the taxation of company cars powered by combustion engines have been met with forceful opposition from the labor wing of the Christian Democrats. Dennis Radtke, chair of the Christian Democratic Employees’ Association, has asserted that more than 70 percent of new vehicle registrations occur in the commercial sector, where company cars constitute essential work instruments rather than discretionary benefits. He has argued that employees in fields such as sales, skilled trades, and home-care services depend on reliable access to vehicles for daily operations, making higher taxation a disproportionate burden on working- and middle-class households. According to Radtke, such an approach risks generating unintended consequences by shifting financial pressures onto groups that lack feasible alternatives.
Radtke further maintained that raising taxes on combustion-engine company cars would weaken economic performance and reduce employment stability, particularly in rural regions where public transportation networks remain underdeveloped and mobility options limited. In his view, political intervention should not deliberately constrain the combustion-engine market, which continues to serve indispensable functions across a wide spectrum of industries. He has instead called for a technology-neutral mobility policy that integrates social equity considerations with the overarching goals of climate mitigation. From his perspective, the SPD’s proposal threatens to undermine not only workers in the automotive sector but also hundreds of thousands of employees in other branches of the economy whose jobs depend on flexible transportation. Radtke therefore characterizes the plan as a significant departure from the SPD’s traditional identity as a party historically committed to representing labor interests.
In parallel with this dispute, a group of SPD lawmakers has circulated a policy paper advocating a restructuring of the taxation system for company cars as a means of promoting electric mobility. Their proposal recommends adjusting the standardized taxable rate for combustion-engine company cars according to CO₂ emissions, with the potential for the rate to rise to as much as 1.5 percent of the vehicle’s list price. This marks a departure from the current flat rate of one percent, and the suggested tiered structure aims to create a clearer financial incentive for companies to shift from combustion technologies to lower-emission alternatives.
