The Bundestag had previously established the legal framework for the subsidy program, which applies retroactively from January. Under the scheme, car buyers receive up to 6,000 euros toward the purchase of a new electric vehicle. In a departure from the previous environmental bonus that expired in 2023, subsidies are also available for plug-in hybrids, which feature an internal combustion engine alongside an electric powertrain. IG Metall head Christiane Benner commented that from the employees' perspective, it is positive that the federal government continues to support electromobility, particularly as public interest continues to grow. Demand for electric vehicles has already picked up significantly in recent months. According to the importers' association VDIK, foreign manufacturers have been the primary beneficiaries, with their market share rising by 3.7 percentage points to 42.7 percent in the first quarter.
Schneider emphasized that the federal government's approach to fleet regulation is pragmatic but directed toward the clear goal of electromobility. "We are advocating in Brussels for slightly more flexibility during the transition, and for good reason: companies must be given the breathing room they need in difficult times to invest in electromobility," he said. "My expectation is clear: these investments must then also take place in Germany." In December, the EU Commission proposed softening the hard phase-out of internal combustion engines in 2035, allowing for the registration of certain gasoline or diesel vehicles beyond that date. At the same time, stricter emission rules are set to apply earlier for fleet operators, who account for the lion's share of new registrations in Europe.
(Reporting by Christina Amann, edited by Kerstin Dörr. For inquiries, please contact our editorial office at Berlin.Newsroom@thomsonreuters.com (for politics and economics) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets))
