Advocates a boost in backing for independent electric vehicle drivers
In a bid to promote sustainable transportation and combat rising costs for consumers, the German government has implemented measures to support the adoption of electric vehicles (EVs). However, the focus on supporting private car owners in transitioning to electric mobility remains unclear.
The German Automobile Club (AvD) has welcomed the government's approach but urged policymakers to consider the financial capabilities of private car owners more strongly. The AvD President, Lutz Leif Linden, has called for increases in the commuter allowance and purchase incentives for EVs.
The Bundestag passed an investment acceleration program on June 26th, aiming to strengthen Germany's economic position. This program includes provisions to promote sustainable mobility, such as reduced Benefit in Kind rates for employees using EVs, which can indirectly benefit private owners.
There is a significant push for expanding public charging infrastructure, benefiting both private and fleet owners. While there are no specific social leasing programs mentioned for private car owners, the overall environment is supportive through cheaper charging and expanded infrastructure, making EVs more economical.
Current incentives are heavily focused on fleet electrification, driven by EU emission regulations and corporate tax benefits. However, there is a growing need for more targeted incentives for private car owners. The AvD, along with the German Association of the Automotive Industry (ZDK) and the two manufacturers' associations VDA and VDIK, have urged the federal government to include leasing in the program.
The AvD's advocacy is not limited to its members but aims to benefit all road users in Germany. The organisation also advocates for more support for households with small and medium incomes in transitioning to electric mobility.
The EU's push for zero-emission vehicles by 2035 is driving a broader strategy to support EV adoption across Europe, including Germany. While there are no specific social leasing programs for private car owners, the narrowing price gap between internal combustion engine vehicles and EVs, along with attractive financing options, is expected to encourage more private buyers to transition.
Despite the lack of concrete proposals for social leasing programs for private individuals, the federal government's quick implementation of these measures will address the issue of increasing costs for consumers and help create a reliable environment for achieving the targeted goals of a CO2-neutral traffic system. The AvD, however, has emphasised the need for policymakers to consider the financial capabilities of private car owners more strongly in future proposals.
[1] Source: https://www.cleanenergywire.org/news/germanys-electric-car-subsidy-scheme-face-review-amid-falling-sales [2] Source: https://www.reuters.com/business/autos-transportation/germanys-electric-car-sales-surge-as-government-subsidies-kick-in-2020-07-27/ [3] Source: https://www.transportenvironment.org/sites/te/files/2021-03/German-Electric-Vehicle-Policies-2021.pdf [4] Source: https://www.cleanenergywire.org/factsheets/electric-vehicles-germany [5] Source: https://www.reuters.com/business/autos-transportation/eus-push-zero-emission-vehicles-2035-drives-broader-strategy-support-ev-adoption-2021-07-14/
- The German Automobile Club (AvD) and other automotive industry associations have urged the federal government to expand incentives for electric vehicle (technology) adoption, particularly for private car owners, emphasizing the need to consider the financial capabilities of these individuals more strongly.
- The Bundeslag, a landlord-tenant association, has suggested a social leasing program for electric vehicles (technology), which would allow households with small and medium incomes to lease electric vehicles more affordably, thereby supporting the adoption of this technology by a broader section of society.
