Bolstering Demand for Increased Momentum in the Private Sector
In the first half of 2025, the overall automotive market in Germany saw a decline of 4.7% with approximately 1.403 million new registrations, according to recent data. However, there was a notable increase in the registration of battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), with BEV registrations rising by 35.1% and PHEV registrations by 55.1%.
These positive figures in June, where BEV registrations increased by 8.6% and PHEV registrations surged by 66.4%, have contributed to the upward trend in e-mobility. Yet, concerns have been raised about the long-term sustainability of this growth, particularly in relation to social leasing programs, which have been criticised by Thomas Peckruhn, Vice President of the Central Association of the German Automobile Industry (ZDK).
Peckruhn highlights that many lessees find it difficult to afford the vehicle after the contract ends, potentially leading to a switch back to cheaper combustion engines. He advocates for promotion projects to focus on creating lasting ownership relationships and enabling sustainable financing models.
Another crucial aspect for the growth of e-mobility is the development of a healthy used car market, particularly for electric vehicles. Peckruhn emphasises that any measures for e-mobility promotion should also include the used car market, as it is essential for the spread of the technology.
In response to these concerns, several initiatives and policy proposals are underway in Germany to support the growth of private e-mobility. These include measures to lower electricity costs, tax incentives and subsidies, the development of charging infrastructure, and efforts to increase transparency in charging tariffs.
The German government has proposed measures to lower electricity costs, which would indirectly reduce the cost of charging electric vehicles. This includes reforms aimed at making electricity more affordable for consumers. As part of its e-mobility strategy, Germany is reintroducing purchase premiums and offering tax incentives to encourage the adoption of electric vehicles.
Germany's "Deutschlandnetz" initiative has allocated significant funds for installing fast charging points across the country. While this does not directly reduce charging costs, it improves accessibility and efficiency, potentially leading to better economies of scale in the charging market.
The European Union's Alternative Fuels Infrastructure Regulation (AFIR) mandates the installation of charging points along major roads, contributing to a more comprehensive charging infrastructure. The Energy Efficiency Act (EnEfG) affects companies with high energy consumption, such as those with large vehicle fleets, promoting energy efficiency and sustainability, which can indirectly support broader e-mobility adoption.
Looking ahead, future initiatives are likely to focus on technologies like dynamic charging and Vehicle-to-Grid (V2G) systems, which could offer new opportunities for cost reduction and efficiency improvements. However, specific policy proposals aimed directly at reducing charging prices and network charges for private users are not yet detailed in current initiatives.
The coalition committee has recently decided to reduce network charges for all consumers by around 3 cents/kWh from 1 January 2026, which is seen as a positive signal for e-mobility by the ZDK. This reduction in network charges, representing around 27% of the electricity price, offers a greater lever for relief than the reduction in electricity tax, which accounts for around 5%.
Despite these efforts, Peckruhn continues to urge for more favorable charging prices, reduced electricity taxes, relief from network charges, and transparency in charging tariffs to ensure the sustainable growth of e-mobility in Germany.
The upward trend in e-mobility has prompted discussions about sustainable financing models, with Thomas Peckruhn advocating for initiatives that foster lasting ownership relationships and cost-effective financing. Additionally, the development of a healthy used car market for electric vehicles is deemed essential for the growth of e-mobility, as it plays a significant role in the spread of the technology.
