German eMobility sector calls on the new government: What are the demands?

Following the February elections and the triumph of the Christian Democratic Union (CDU), the electromobility sector in Germany put forward a series of demands for the new government, which was still in negotiations.

In this context, the Bundesverband Beratung neue Mobilität e.V. (BBNM) asserts that the transition should be approached comprehensively, with a determined focus.

“It is not only about the transport sector but also the areas of the economy, energy, and digitalisation,” the association states to Mobility Portal Europe.

At present, the political and economic context in the country is complex, with the automotive market facing both internal and external challenges, including a decline in exports and uncertainty over subsidy policies.

The CDU’s negotiation partners, the CSU (Christian Social Union of Bavaria) and the SPD (Social Democratic Party of Germany), presented initial proposals on how to drive the energy transition and mobility in the country.

“We consider a reduction in the electricity tax and network fees to be a very positive approach, as it would make household charging even more attractive,” BBNM asserts.

Additionally, the association proposes six measures for the future German government to promote electromobility “effectively and sensibly.”

What are these?

Firstly, BBNM suggests that if subsidies for purchasing electric vehicles (EVs) are reintroduced, they should include a social component.

“Until the end of 2023, citizens with higher incomes were the main beneficiaries of the subsidies,” they point out.

Therefore, they argue that with the emergence of more affordable models, support should be directed towards buyers with lower purchasing power.

“France set a good example with social leasing,” they emphasise.

Next, the association proposes establishing tax deductions to offset the premium cost of EVs until price parity between EVs and combustion vehicles is achieved.

“This was also recently proposed by Oliver Blume, the CEO of Volkswagen,” they note.

The third point they highlight is compensation for mileage.

“Rather than a widespread increase, this incentive should preferably be reserved for low-emission vehicles or, at the very least, for the planned increase,” they explain.

In this context, BBNM acknowledges the importance of promoting the electrification of agricultural fleets, which constitutes the fourth point.

Rather than continuing to subsidise diesel use in the sector, the association proposes that specific incentives be implemented to encourage the adoption of electric machinery.

The fifth proposal on BBNM’s agenda is to ensure that the reduction in electricity costs also benefits users of public charging stations.

The goal would be to reach an average charging price across the European Union, avoiding the large disparities that currently make using electric vehicles more expensive in certain parts of Germany.

“A significant amount of funds could be freed up for these subsidies if the future German government focused on electromobility rather than continuing to fund less promising technologies,” they stress in sixth place.

As an example, they mention hydrogen and e-fuels, whose “scattered strategies entail investments in the billions of euros.”

The association also emphasises the need to modernise the electricity grid, considering it a priority, as well as to expand public and commercial charging infrastructure.

“It is not enough for electricity to be cheaper; it must be available at all times and in the places where it is needed,” they explain.

In parallel, according to Christian Thelen, BBNM e.V. Head of Marketing & Communication, many manufacturers reached their CO2 emissions limits early in electric vehicle sales, allowing them to postpone meeting their quotas until January.

“Given that new brands and highly attractive EV models will enter the European market, we believe sales will grow regardless of public subsidies,” he asserts.

In this context, he emphasises that collaboration between policymakers and industry leaders “is essential.”

For what purpose?

“To make electrification the driving force of future mobility in a sustainable, efficient, and competitive way,” says Mazlum Yaylaci, Head of Sector Connections at BBNM e.V.

German political landscape

In the federal elections held on 23 February, the CDU, led by Friedrich Merz, received 28.5% of the vote, positioning itself as the most voted political force.

The far-right party Alternative for Germany (AfD) garnered 20.6% of the vote, while the SPD came in third with 16.1%.

Despite its victory, the CDU did not achieve an absolute majority in the Bundestag, forcing Merz to seek alliances to form a government.

The politician ruled out any coalition with the AfD, stating that their objectives are opposed.

Currently, negotiations are ongoing between the political parties, especially with the CDU, CSU, and SPD, to form a coalition that will allow Merz to assume the role of chancellor and ensure the country’s governability.

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